REPORT ON THE INTEGRATED LAND TENURE ASSESSMENT OF THE CDI CITIES AND CITY

Strengthening Urban Resilience for Growth with Equity (SURGE) Project

CONTRACT NO. AID-492-H-15-00001

SEPTEMBER 29, 2016

This report is made possible by the support of the American people through the Agency for International Development (USAID). This report was prepared by LGI Consultants, Inc. under contract with the International City/County Management Association (ICMA). The contents of this report are the sole responsibility of ICMA.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page i Report on Integrated Land Tenure Assessment, September 2016

REPORT ON THE INTEGRATED LAND TENURE ASSESSMENT

Strengthening Urban Resilience for Growth with Equity (SURGE) Project

CONTRACT NO. AID-492-H-15-00001

Program Title: USAID/SURGE Sponsoring USAID Office: USAID/ Contract Number: AID-492-H-15-00001 Contractor: International City/County Management Association (ICMA) Date of Publication: September 29, 2016

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page i Report on Integrated Land Tenure Assessment, September 2016 Contents

I. Introduction 1

A. Objectives & Purpose of the Assessment Study 1 B. Scope and Methodology of the Study 2 C. Analytical Framework 3 II. Integrated Assessment 7

A.Land Resources Inventory 7 B.Cadastral Survey and Titling 10 C. Access to Land Information 15 D.Perception of Private Sector on Quality of LAM Services 18 E.Related Programs 22 F.Status of City-Owned Lands 23 G.Land Tenure-Related Issues 26 III. General Recommendations 29

A.Establish Unified Land Information System (ULIS) 29 B.Titling to harness the potential of land for investments 30 C.Management of government lands 31 D.Addressing land constraints 31 E.Preparation of land tenure improvement plan for new growth areas 32 IV. City Specific Recommendations 33

A.Antipolo City 33 B. City 34 C. de Oro City 36 D. City 37 E. City 37 F. City 38 G. 38 References 52

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page ii Report on Integrated Land Tenure Assessment, September 2016

List of Tables

Table 1. Land Area Estimates, CDI Cities 7 Table 2. Land Classification in CDI Cities, 2015 8 Table 3. Existing Land Uses in CDI Cities, 2015 9 Table 4. Status of Cadastral Surveys and Titling 11 Table 5. Estimated Number of Parcels 12 Table 6. City-Owned Properties in 25 Table 7. Summary of Proposed SURGE Intervention on Land Tenure 32 Table 8. Proposed Map Overlays 34

List of Figures

Figure 1. LPTR Linkages with Economic Growth 4 Figure 2. Projection of Titled Property in Zamboanga City’s Coastal Area 15

Annexes

Annex 1. Checklist of Land Information for Surge Cities 40 Annex 2. Selected Photos 43 Annex 3. List of Persons Met 49

References

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page iii Report on Integrated Land Tenure Assessment, September 2016 Acronyms

A&D Alienable and Disposable ADB/JFPR Asian Development Bank/ Japan Fund for Poverty Reduction AID Agencies for International Development AusAID Australian Agency for International Development AVP Assistant Vice President BBA Bankers Association BCCI Bohol Chamber of Commerce and Industry BIR Bureau of Internal Revenue CAD Cadastral Survey CADTs Certificate of Ancestral Doman Titles CAR Certificate Authorizing Registration CARP Comprehensive Agrarian Reform Program CASSO City Assessor’s Office CBFM Community Based Forest Management CCM Climate Change Mitigation CDI Cities Development Initiatives CDO Cagayan de Oro CENRO City Environment and Natural Resources Office CGT Capital Gains Tax CLENRO City Local Environment and Natural Resources Office CLOAS Certificate of Land Ownership Awards CLUPS Comprehensive Land Use Plans CNC Certificate of Non-Coverage COA Commission on Audit COMPETE Advancing Philippines Competitiveness Project CPA City Project Assistant CPC City Program Coordinator CPDC City Planning and Development Coordinator CPDO City Planning and Development Office CREBA Chamber of Real Estate and Builders’ Associations Inc. CTC Certified True Copy DAO Department Administrative Order DAR Department of Agrarian Reform DBM Department of Budget and Management DCDB Digital Cadastral Database DENR Department of Environment and Natural Resources DFID Department for International Development DILG Department of the Interior and Local Government DND Department of National Defense EC Environmental Certificate ECC Environmental Compliance Certificate ENRO Environment and Natural Resources Office EP Emancipation Patents FLBD Forest Land Boundary Delineation FP Free Patent GDP Gross Domestic Product GIS Geographic Information System

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page iv Report on Integrated Land Tenure Assessment, September 2016

GPS Global Positioning System GSD General Services Department GSO General Services Officer HLURB Housing and Land Use Regulatory Board ICMA International City/County Management Association ICR Implementation Completion Report IEC Information, Education and Communication IRA Internal Revenue Allotment LAM Land Administration Management LAMP Land Administration Management Project LAMP2-ISF Land Administration Management Project Phase 2 – Innovation Support Fund LAMS Land Administration Management System LAOO Local Assessment Operations Officer LARES Land Registration System Incorporation LBP Land Bank of the Philippines LEI Land Equity International LGI Land and Governance Innovations Consultants, Inc. LGU Local Government Unit LIP Land-based Information Platform LMB Land Management Bureau LMS Land Management Services LPG Liquefied Petroleum Gas LPTR Land Tenure and Property Rights LRA Land Registration Authority LTCP Land Titling Computerization Project LTOO Local Treasury Operations Officer MIGEDC Metro Iloilo Economic Development Council MOPA Memorandum of Partnership Agreement MSP Miscellaneous Sales Patent NAMRIA National Mapping and Resource Information Authority NCIP National Commission on Indigenous People NGA National Government Agency OCT Original Certificate of Title OIC Officer-in-Charge PAREB Philippine Association of Real Estate Brokers PCCI Philippine Chamber of Commerce and Industry PENRO Provincial Environment and Natural Resources Office PREP Property Rights for Economic Reform Project RA Republic Act RD Regional Director RDENR Regional Department of Environment and Natural Resources REGALA Support to Local Government Revenue Generation and Land Administration Reforms Project RoD Registry of Deeds RPT Real Property Tax RPU Real Property Unit SAT Systematic Adjudication and Titling SHDA Socialized Housing Developers Association SMV Schedule of Market Values SURGE Strengthening Urban Resilience for Growth with Equity

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page v Report on Integrated Land Tenure Assessment, September 2016 TCT Transfer Certificate of Title TOR Terms of Reference ULIS Unified Land Information System USAID United States Agency for International Development WB World Bank

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page vi Report on Integrated Land Tenure Assessment, September 2016

I. Introduction

The Strengthening Urban Resilience for Growth with Equity (SURGE) is a United States Agency for International Development (USAID) Project in the Philippines, awarded to the International City/County Management Association (ICMA). The objective of the SURGE program is to enable second‐tier cities to become economically thriving and resilient growth centers outside the metropolises of , and Davao. As engines of growth, these cities will provide a better quality of life for residents and people in surrounding areas. By the end of SURGE, activities are expected to have contributed to higher levels of investment and employment for both the second‐ tier and adjacent rural areas. Activities under SURGE are also expected to improve urban resilience by enhancing disaster risk preparedness, thereby ensuring sustainable growth.

The SURGE project aims to contribute to inclusive growth by (1) improving local capacity in inclusive and resilient urban management and processes (2) promoting low emission local economic development strategies and (3) expanding urban rural connectivity and access. Since investments power local growth, Component 2 of SURGE works toward making cities more competitive by promoting measures that lower the cost of doing business, strengthening partnerships with the private sector, capacitating city officials to effectively promote investments, and improving land tenure security and land information system.

Land tenure and property rights are seen as key to developing more competitive cities, particularly in the SURGE cities which are experiencing rapid economic growth, as manifested by ongoing construction activities. Unleashing the potential of more secure tenure and property rights will spur land market activity, and attract further investments in land development. In the same way, unlocking the bottlenecks faced by real estate industry players in securing locational clearances, conversion of agricultural land, mobilization of land, and making land information more reliable, up-to-date and available, could produce strong economic impacts in the SURGE cities.

This assessment covers the first scoping study on the status of land tenure and associated issues in the Cities Development Initiative (CDI) cities, including Antipolo City. Given the lack of information and the way land information is spread among agencies, it is envisioned that as SURGE works in the cities, more detailed and accurate information will be gathered to be used as inputs to deepen engagement. Nonetheless, the data gathered were deemed sufficient to establish the state of land tenure and administration in the cities, and develop recommendations accordingly.

This report addresses Task 2.3.1: Improve land tenure security, Output 2.3.1.1.1: Land tenure profiles for the CDI cities.

A. Objectives & Purpose of the Assessment Study

The objective of this assessment is to gather all relevant land information and describe the land tenure issues in the cities. The end view is to define the scope of SURGE support in the areas of land tenure and property rights improvement, and develop more reliable and up-to-date land information system for use by cities in land use planning, land management, real property taxation, valuation, and promotion of investments on land.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 1 Report on Integrated Land Tenure Assessment, September 2016

B. Scope and Methodology of the Study

In the context of this assessment, the following aspects of land tenure security and property rights were investigated:

Land resources inventory. This includes references to various estimates of land area, the amount of land under various legal classifications, and allocation to different land uses. The information suggests the constraints to land development, and/or available supply of land to meet various demands. The information was gathered from secondary sources, and compared with local government unit (LGU) data.

Status of cadastral surveys and extent of titling. Completion of cadastre signifies confirmation of the extent of city land area jurisdiction and readiness for individual titling of parcels. Errors in surveys and missing surveys resulted in overlaps in LGU jurisdictional boundaries, uncertainty of land area as basis of internal revenue allotment (IRA), and issues in titling. The Department of Environment and Natural Resources (DENR) was the main source of this information which was validated with the city assessor’s office and other agencies using survey records. It must be noted that no agency has accurate counts of parcels with and without titles. Thus, only estimates were derived from key informants.

Access to land information. DENR holds cadastral records, public land applications and approved subdivision/consolidation surveys. The Registry of Deeds (RoD) holds title records, including transactions on these properties. The Land Registration Authority (LRA) maintains approved subdivision/consolidation surveys. The Department of Agrarian Reform (DAR) holds records of Certificate of Land Ownership Awards (CLOAs) and coverage of the Comprehensive Agrarian Reform Program (CARP). The National Commission on Indigenous People (NCIP) processes ancestral domain claims into titles. The assessment reviewed the LGUs’ access to all the information which is crucial for planning, titling, property taxation, and promotion of investments in property development.

Perception of the private sector on quality of land administration and management (LAM) services, and potential (and constraints) to development. The experiences of real estate brokers, subdivision developers, and others engaged in land development on access to land information; constraints to and availability of land for development; transactions with RoD, DENR and LGUs in the registration of titles; review and approval of subdivision plans; and securing locational clearances and development permits were gathered. Likewise, the forecasts of the private sector on trends and potential for investments in property development in the city were noted. The information was obtained through focus group discussions, key informant interviews, and secondary data.

Related programs of other agencies. A review of the presence and status of agency programs that could affect tenure security was made. This includes the status of CARP implementation, implementation of land administration and management system (LAMS) by the DENR, computerization of the RoD; processing of certificate of ancestral domain titles (CADTs), an LGU- led titling program, and related initiatives.

Status of city-owned lands. The assessment looked at the availability of inventories of city- owned lands, whether these are all titled in the name of the city government, information on location and current uses, and LGU plans for the management of these lands.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 2 Report on Integrated Land Tenure Assessment, September 2016

Land tenure related issues. Concerns on enforcement of rights, registration of properties, efficiency of titling, overlaps of legal instruments, and other constraints to the development of a sound property rights system in the city were documented through key informant interviews.

Because land information is distributed among agencies, integrated mapping and consolidation of these data are necessary to generate overlays that are useful for analysis. This is a limitation of the assessment. Each city assessment took only two to three days which did not allow such mapping analyses to take place. Moreover, such consolidation would require access to all data and records of the agencies. This was not possible during the assessment. At the time of the assessment, the DENR was in the process of grooming and/or encoding their records in preparation for the LAMS; therefore, it was not possible to access their records. Moreover, since most RoDs have fully computerized systems, access to records would be possible only through a Memorandum of Agreement (MOA) between the LGU and the LRA contractor, the Land Registration Systems (LARES). Thus, information on titling coverage for example, were only estimates and not exact figures.

C. Analytical Framework

There is considerable wealth of literature that puts importance on the role of property rights among institutions promoting growth, and the role of the state in formalizing and protecting such rights1. This stems from the argument that “institutions are powerful determinants of growth, and that property rights represent one category of economic institutions” (Rodrik, as cited in DFID, 2014).2

There are four pathways by which secure property rights influence economic activity and resource allocation:3

Security channel, whereby investment by firms are expected to lead to a flow of income which needs to be protected against expropriation through secure, well-defined property rights. Such protection provides an incentive to invest. This implies that with insecure property rights, firms or individuals may fail to realize their investments and efforts; Efficiency channel, which enhances the mobility of assets through transactions such that assets are transferred to those who can use them most productively; Reduced protection costs – secure property rights mean that individuals can devote fewer resources to protecting their property and these resources can go to productive uses; and Transactions facilitation – formally defined property rights allow for the use of property in supporting other transactions by using it as collateral to raise resources in the financial market. This may increase productivity.

1DFID. April 2014. Secure property rights and development: Economic growth and household welfare. Property rights evidence paper. 2The traditional view is that economic growth, measured through increase in real gross domestic product (GDP), is attributed to accumulation of factors of production and increased labor productivity (Lucas 1988 and Williams, et.al. 2009, as cited in DFID, 2014). In turn, these are influenced by underlying factors such as degree of integration with the global economy, macroeconomic stability, public sector governance/public financial discipline, institutional framework, and degree of government intervention (Rodrik 2000, 2003 and 2004, and World Bank, 2005, as cited in DFID, 2014). 3 Besley and Ghatak (2009; 2011); as cited in DFID, 2014.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 3 Report on Integrated Land Tenure Assessment, September 2016 Secure land tenure and property rights (LPTR) have also long been recognized by USAID as a foundation for economic growth in both rural and urban areas4. USAID presents the conceptual framework that links these two variables (Figure 1).

Figure 1. LPTR Linkages with Economic Growth5

4USAID Issue Brief. Land Tenure, Property Rights and Economic Growth in Rural Areas. Retrieved from www.usaidlandtenure.net/sites/default/files/USAID_Land_Tenure_Economic_Growth_Issue_Brief-061214.pdf

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 4 Report on Integrated Land Tenure Assessment, September 2016 In the Philippines, there is a wealth of empirical evidence linking the benefits of secure property rights through titling (Box 1). While the data were taken from rural areas, it is believed that based on the experience of LAMP2, the economic benefits will be greater or the same in urban areas, considering that: (i) urban parcels have higher values; (ii) the likelihood that there are available documents to support applications for titling are high; (iii) the probability that the parcels are captured in the LGU tax maps is high; and (iv) there is more active buying and selling of lands in urban than in rural areas. These evidences are consistent with international empirical studies on the impact of secure property rights on economic growth.5

Box 1. Benefits of Titling (as reported in Land Governance Assessment Framework, WB-LGI)

Increase in Market Values of Property In studies undertaken by LAMP1 and LAMP2: Titled lands have mortgage values higher than 3.65 times in City and 17 times in City, compared to untitled lands (Land markets study). Unit sales values are higher by 2.46 times for titled lands in Malaybalay and 62% higher in Tacloban compared to untitled lands (Land markets study). In , land sales and mortgage values of untitled lands are lower by 34% compared to titled lands (Land markets study). Regression results from a case study focusing on two municipalities in Province indicate that the ratio of actual land prices of comparable titled versus untitled agricultural lands is 1:35 (Study on market values of titled and untitled lands)

Increase in Investments in Property Development The percentage of those who invested in development of their land is higher in LAMP2 areas compared to non-LAMP areas (13% and 5% for LAMP2 and non LAMP2 respondents in Leyte; and 13% and 4% for LAMP2 and non LAMP2 respondents in Bohol (LAMP2 ICR). Titled properties have a land capitalization rate of 18.02%, even under a scenario of no complementary improvements in land, capital, and financial markets. This estimate was based on the weighted average of land capitalization rate for real estate establishments in the Philippines (Land markets study).

Increase in collection of real property taxes (RPT) In City, the RPT collection increased by 74% or an additional Php27 M following titling activities in pilot barangays.

Sources: DENR. (2003). Land Markets Study. Land Administration and Management Project. Note: In the case of Malaybalay, Tacloban and Tarlac, the properties involved are residential and commercial, with a few agricultural parcels. Land Equity International. (2010). Study on Market Values of Titled and Untitled Lands, Land Administration and Management Project Phase 2, Report E58, June 2010, Manila. World Bank. (March 2015). LAMP2 ICR. Bayawan City presentation to the International Urban Development Conference. (2016, July).

5Other studies argued that formalization of rights should be consistent with informal arrangements for the cities to realize the impact.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 5 Report on Integrated Land Tenure Assessment, September 2016 USAID noted that there are different elements of land formalization that need to be clearly recognized in security property rights: land law reform which recognizes and strengthens property rights; land titling which confers those property rights on landholders; and land registration, which provides a public record of those rights, facilitating proof, and reducing transaction risks.

In the context of this assessment, formalization and secure property rights refer to registered titles. While it is acknowledged that there could be a continuum of secure tenure, it is believed that a freehold system, recognized and registered by the state through titles, still offers the best form of tenure security. However, for the benefit of formalization through titling to be realized, the government should be able to enforce and protect these rights. It is, thus, equally important to ensure that the country’s registry and the records that support these, are highly reliable, up-to- date, and accurately reflect the rights and interests on the parcels.

Indeed, a number of scholars have argued that: “… formal property regimes are considered to be essential to economic growth because, when fully functional and accessible, they provide clearer and more secure allocations of property rights than could any informal measures to protect private property. Where there is a credible third-party enforcer of property rights – in particular, the state – uncertainty is reduced or completely eliminated. … state backed registry would have the capacity to provide the most secure property rights, given the extensive adjudicative and coercive capacities that one associates with a fully functioning state…. A formal property system can also reduce transaction costs in market interactions by providing increased information to third parties about the rights that an individual has over land” (Trebilcock & Veel, 2002).

Improving tenure security through confirmation of long-term possession has been the aim of the Philippines’ land titling program for almost a century. Through Commonwealth Act 141, the responsibility for titling is lodged with the national agencies. The case of administrative procedures is through the DENR; the case of judicial procedures is through the Courts. However, based on a 2003 survey, the remaining parcels that are untitled still amount to 11 million, or 49% of the estimated total number of parcels in the country6. Titling is beyond the reach of many citizens due to in part to the very tedious and costly process, and poor management of records.

More streamlined titling procedures were introduced in 2010 through the systematic adjudication and titling (SAT) developed through the World Bank and Australian Agency for International Development (AusAID)-supported Land Administration and Management Project (LAMP). This greatly reduced the time and cost to issue agricultural land titles. In 2010, a new law was passed (Republic Act 2003) which provided for more simplified procedures for titling of residential lands in the urban areas. A number of local governments have also undertaken the task of titling lands in their respective jurisdictions. Such DENR-LGU partnership model was tested in LAMP2 and later under the Asian Development Bank/ Japan Fund for Poverty Reduction (ADB/JFPR)-funded Support to Local Government Revenue Generation and Land Administration Reforms (REGALA) Project. This was subsequently formalized through a DENR Administrative Order (DAO 2011- 06), which forged a Memorandum of Partnership Agreements (MOPA) with LGUs on public land titling. The Department of Interior and Local Government (DILG) strengthened this policy with the issuance of a DILG Memorandum Circular 2011-07. USAID then provided assistance in the

6Philippines-Australia Land Administration and Management Project. September 2004. Land Tenure Status Report Book 1 – Results.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 6 Report on Integrated Land Tenure Assessment, September 2016 development of a DENR-LGU Partnerships Handbook through the Property Rights for Economic Reform Project (PREP).

Beyond titling, there are other attendant issues that prevent most local governments from maximizing the efficient and effective use and management of its land resources. These include conflicts, overlaps and errors in cadastral surveys, overlapping titles, slow and costly registration and transfer processes, untitled government properties, and the proliferation of informal settler families without secure titles. These were also discussed in this assessment.

The assessment is presented in two parts: Part 1 covers the integrated presentation of findings and analyses. Part 2 presents the summary of city level analyses and recommendations for SURGE support.

II. Integrated Assessment

A. Land Resources Inventory

The cadastral surveys conducted by the DENR provide the authoritative data on the extent of the LGUs’ land area, and subsequently serve as the basis of the IRA. Except for , all the CDI cities have discrepancies in terms of the land areas reported under their comprehensive land use plans (CLUPs) and the DENR, based on cadastral surveys (Table 1). This implies uncertainty in the estimation of the IRA, and impacts the planning, budgeting, and governance of the city. There are discrepancies in the land area estimates of DENR records, CLUP records, and city’ assessor’s office.

Table 1. Land Area Estimates, CDI Cities Land Area Estimates (hectares) CDI City Based on DENR Based on CLUP Based on City Records Records Assessor’s Records Antipolo N/A 29,680 N/A Batangas 27,000 28,674 28,300 Cagayan de Oro 56,000 57,384 48,900 Iloilo 7,000 7,572 7,834 Puerto Princesa 218,000 219,265 238,100 Tagbilaran 30,000 32,429 37,200 Zamboanga 139,000 142,099 148,300

There are four possible reasons for these discrepancies: The IRA released by the Department of Budget and Management (DBM) is directly related to the total land area of an LGU; hence, the larger the area, the higher the IRA is. Thus, many LGUs opt to officially declare larger areas than figures reported by the DENR based on cadastral survey. LGUs with political boundary conflicts used land areas inclusive of the disputed areas even if these disputes are not yet resolved and legally finalized. The sources of the data and information on the total land area of an LGU are not consistent. Ideally, it should be based on a cadastral survey administered to the whole

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 7 Report on Integrated Land Tenure Assessment, September 2016 locality. However, not all LGUs have this survey and rely on what is available from various sources; and Within the DENR, reports documenting the total land area of a province, city, or municipality lack consistency and reliability in terms of official area based on cadastral surveys. It is very common for offices of the Provincial Environment and Natural Resources Office (PENRO), City Environment and Natural Resources Office (CENRO), the Regional Department of Environment and Natural Resources (RDENR) and even the Land Management Services (LMS) to have different data on the total land areas and land classification information.

The DENR has sought to complete the cadastral surveys in the Philippines in the last six years in order to confirm the area covered by each municipality, city, and province. The government allocated Php5.7 B for 2010 to 2015 to complete the cadastral surveys for the remaining 881 cities/municipalities or 54% of all LGUs in the Philippines. It should be noted that the cadastral program has been around since 1913 but has only accomplished 46% or 753 cities/municipalities by the end of 2009. It is expected that with the completion of the program, the political boundaries of local governments will be determined and claimants of parcels without titles will be recorded.7 This, however, will not address existing problems in terms of defective cadastral surveys, and/or boundary conflicts in areas where cadastral surveys have been completed in the past.

Puerto Princesa City has the biggest land area, while Iloilo City has the smallest. A review of land classification, however, shows that of the seven cities, Zamboanga has the biggest available land inventory of alienable and disposable lands (A&D); the cities of Iloilo and Cagayan de Oro have the least. Expansion of commercial and residential development in Iloilo and Batangas are constrained by their very limited A&D lands, and/or large proportion of agricultural land. Future development, therefore, will have to consider vertical development, expansion beyond the city limits to cover adjacent municipalities, and/or innovative ways to make use of timberlands to satisfy land demand forecasts (Tables 2 and 3, and Figure 2). A special case is Puerto Princesa City which has a huge proportion of unclassified forests (151,293 hectares). Immediate classification of these lands is urgent to determine areas that can be released for A&D and hence, titling; and/or retained as forestlands. This will require innovative solutions to meet future land demand for urban development.

Table 2. Land Classification in CDI Cities, 20158 Classified Alienable Classified Unclassified Public Total Land City and Disposable Lands Forestlands Forests Area Hectares Percent Hectares Percent Hectares Percent (hectares) Antipolo 11,872 40% 17,808 60% 0 0 29,680 Batangas 28,674 100 % 0 0 0 0 28,674 Cagayan de Oro 27,930 49 % 29,266 51 % 0 0 57,384 Iloilo 7,041 93 % 530 07 % 0 0 7,572 Puerto Princesa 50,430 23 % 17,541 08 % 151,293 69% 219,265 Tagbilaran 31,456 97 % 973 03 % 0 0 32,429 Zamboanga 64,872 53 % 66,787 47 % 0 0 142,099

Based on the land inventory, the following land constraints will have to be overcome in order to unlock land for future urban development:

7 www.http://lmb.gov.ph (accessed August 18, 2016) 8 Based on latest CLUPs.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 8 Report on Integrated Land Tenure Assessment, September 2016 In , it is essential to work out phased conversion of existing agricultural land if more areas are needed for residential, commercial, and industrial use.

Cagayan de Oro City still has a relatively large stock of land for residential and commercial purposes. In the same way, it has to unlock its agricultural lands if more lands are required for horizontal expansion of residential and commercial areas.

Iloilo City has very limited lands and faces critical constraints in land availability due to the rapid phase of property development. Technological solutions such as infilling of fish pens/salt beds, or expansion towards adjacent municipalities through the Metro Iloilo Guimaras Economic Development Council (MIGEDC) need to be worked out to make additional land available.

The key constraint in Puerto Princesa City is the presence of some 28,745 hectares of land with uncertain land use. However, it has a large area of A&D lands that are devoted to residential and commercial use. The size of land currently used for residential purposes is still huge at 6,000 hectares which is almost the size of Iloilo City. Additional land requirements could be met with proper planning and management of the remaining 28,745 hectares of land currently placed under other uses.

Tagbilaran City still has a relatively large residential area. Future expansion will require conversion of areas currently under agriculture as well as other uses. However, the city has relatively few large land developers indicating that in the near future, it does not expect to have critical land supply issues.

Zamboanga City has the largest A&D lands among the CDI cities. Despite the fact that 60% of these are currently used for agriculture, the city still has plenty of space for urban development, given the relatively slow land market activity in the city. It has targeted the Mercedes area as a new growth area and the proposed location of a new international airport. However, the airport will require up to 2,000 hectares while said only has a land area of 1,288 hectares, of which 636 hectares are irrigated paddies. This move, therefore, will require land conversion of prime agricultural lands and the addition of more lands in nearby barangays.

Table 3. Existing Land Uses in CDI Cities, 2015 City A&D Lands9 Residential Commercial Agricultural Institutional Industrial Others

Batangas 28,674 2,867 290 23,512 290 580 1,147

(10%) (1%) (82%) (1%) (2%) (4%) Cagayan de Oro 27,930 12,848 1,676 9,496 559 280 3,072

(46%) (6%) (34%) (2%) (1%) (11%) Iloilo 7,041 1,971 493 1,690 211 70 2,605

(28%) (7%) (24%) (3%) (1%) (37%)10 Puerto Princesa 50,430 6,052 2,522 12,103 504 504 28,745 11 (12%) (5%) (24%) (1%) (1%) (57%)

9Based on latest CLUPs 10Includes 634 hectares of fish pens/salt bed 11Includes open areas

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 9 Report on Integrated Land Tenure Assessment, September 2016 City A&D Lands Residential Commercial Agricultural Institutional Industrial Others

Tagbilaran 31,456 19,817 5,662 3,775 944 630 630

(63%) (18%) (12%) (3%) (2%) (2%) Zamboanga 64,872 9,082 5,190 38,923 649 649 10,380

(14%) (8%) (60%) (1%) (1%) (16%)

Based on the CLUPs, the cities have allocated additional areas for expansion of residential and commercial land uses, which would mean conversion of lands that are currently used for agriculture. This will require a more comprehensive strategy with the Department of Agrarian Reform (DAR).

B. Cadastral Survey and Titling

Surveys create the parcels. This is why surveys are important in securing property rights and land tenure. In the case of cadastral surveys, these serve the following major purposes: They establish the control points upon which future surveys are linked in order to provide order and accuracy (i.e. geodetic controls); They define the metes and bounds of local governments, by setting the boundaries and therefore the land area covered by an LGU (i.e. political boundary survey); and They document the metes and bounds of the parcels and the claimant of each parcel (i.e., parcel survey, subdivision survey, or consolidation survey).

Cadastral surveys were done in all of the CDI cities prior to the Second World War. Thus, most of these surveys were lost, misplaced, or damaged during the war. Therefore, titling did not proceed after the surveys. Moreover, LGUs reported erroneous and overlapping surveys that led to inaccurate estimates of land areas, and political boundary conflicts.

Antipolo City Antipolo City is covered by cadastral surveys that were completed in the 1930s. Most of the titling activities were based on this very old survey which explains why applications in recent years had to trace their relationship with the original survey claimant in the 1930 cadastral surveys. These include: affidavits of judicial partition, deeds of sale from previous claimants, subdivision, and consolidation surveys to reflect changes in lot configuration and ownership, among others.

The DENR does not have a complete set of Antipolo cadastral maps. Some were lost due to the transfer of records from the Land Management Bureau (LMB) to the regional offices and back. Others were misplaced and destroyed due to the war or due to transfer of offices. Thus, it is not possible to undertake systematic titling in Antipolo City. Existing survey records were mostly paper records which are not in very good condition and have deteriorated. Applications are lodged in index cards and not projected on a master map.

The DENR is not inclined to undertake systematic titling in Antipolo City because of the reasons cited above. Most of the applications received are supported by isolated surveys that are linked with the controls and technical description of adjacent parcels. This is not a good process of generating titles that are supposed to be guaranteed by government under the principle of the Torrens system.

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There has been a surge in subdivision development in Antipolo given its hilly topography and relatively cool climate. It may be inferred that since RA 10023 was issued only in 201012, most of the subdivision developers sought these titles through the judicial process. This could be long and costly, but the resulting title does not have restrictions on transfers and mortgage. It is also the preferred option in residential lands.

Approximately 60% of the total land area is forest or public lands and a significant portion is devoted to agriculture. The forests of Antipolo have been proclaimed as watershed and protected areas that comprise the biggest tributary to the River. Initially, the entire forestland of Antipolo City was covered by the Marikina Watershed Reservation. Several presidential proclamations, however, have carved out a significant chunk of the reservation and were opened for disposition. A study undertaken in 2004 under the AusAID-assisted Land Administration and Management Project (LAMP) reported that Antipolo City has 85% titled parcels. Based on DENR records, the free patents that it issued in recent years consisted of 471 agricultural patents (since 1990) and 108 residential patents (since 2011).

Note that these represent only part of the titling achievements since there is a parallel titling through the judicial process or the courts. The DENR does not have data on parcels that have been titled through this other process. Based on the records of the assessor’s office, there are 168,219 land RPUs in the city.

Table 4. Status of Cadastral Surveys and Titling Cadastral Surveys % of Parcels % of Parcels City CAD Project Remarks Titled Untitled Antipolo 1930s Completed, but missing survey 85 15 records Batangas CAD 264 Survey records missing 40 60 Cagayan de Oro CAD 237, CAD 369 Overlaps and errors in survey 60 40 Iloilo CAD 7 and 8 Complete, missing surveys 93 07 reconstructed Puerto Princesa Erroneous surveys 60 40 Tagbilaran Pre war CAD 234 Complete and in order 95 05 Zamboanga CAD 14, 18 and 124 Overlapping surveys 90 10

Batangas City

Among the CDI cities, Batangas has the highest proportion of untitled parcels, estimated at between 60-70%. Using the parcel estimates from the RPU count of the assessor’s office, this translates to about 89,328 to 104,21613 parcels. The main reason for the huge titling backlog is the absence of copies of survey plans that were reportedly lost from the DENR records. While the city government through its Environment and Natural Resources Office (ENRO) has established a titling program, it has produced only 62 titles. The city ENRO managed to have

12RA 10023 enabled residential public A&D lands to be titled using the Free Patent procedures. It is much more streamlined and lowered the period of possession to be eligible to 10 years. Unlike the agricultural Free Patent, the residential Free Patent, once issued can be immediately transacted and/or mortgaged. 13The RPU count at the assessor’s office needs to be validated once data from the RoD and DENR are available and cleaning of records are done. As in most LGUs, assessors’ records contain duplicates because of the practice of not retiring old tax declarations whenever transfers are made on the properties.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 11 Report on Integrated Land Tenure Assessment, September 2016 surveys conducted on more than 500 parcels but no titles have been produced yet out of these. Based on the DENR, most of the titled properties are located in the residential, commercial, and industrial areas. These properties have to be properly projected on consolidated cadastral maps to determine the types of lands requiring titling, and the type of titling necessary.

Most of those who have managed to get their lands titled were able to do this through the judicial process. Based on data from the clerk of court, judicial titling was used by big companies with established businesses in oil, power, and other industrial-based ventures. These companies are General Holdings, Ayala Corporation, and First Gas Corporation. This is understandable as the process is very costly and time consuming, usually taking three to six years to complete. The cost is beyond the reach of ordinary landowners. Likewise, stakeholders to commercial and industrial lands would not go through the Free Patent mode of titling. The more applicable mode would be through Miscellaneous Sales which requires applicants to purchase the property from government. The judicial process, while expensive due to the cost of hearings and legal fees, simply entails a transfer of public lands to private corporations. Thus, per the clerk of court, most of the judicial proceedings, are usually challenged by the Solicitor General who manifests opposition to the transfer of public lands to private corporations, without the benefit of purchasing these from government. In this case, the government is represented by the DENR.

Table 5. Estimated Number of Parcels A&D Land Land Real Average Land Titled Parcels Untitled Parcels City Area14 Property RPUs per (Hectare) Units15 hectare % Number % Number Antipolo 11,872 168,219 14 85 142,986 15 25,233 Batangas 28,674 148,880 5 40 59,552 60 89,328 Cagayan de Oro 27,930 187,587 7 70 131,311 30 56,276 Iloilo 7,041 160,280 23 93 149,060 07 11,220 Puerto Princesa 50,430 65,703 1 60 39,422 40 26,281 Tagbilaran 31,456 53,079 2 95 50,425 05 2,654 Zamboanga 64,872 156,727 2 90 141,054 10 15,673

The situation in Batangas has prompted landowners to rely on tax declarations as proof of possession. In fact, banks in Batangas are known to honor tax declarations as mortgage for loans. Due to the strong culture of trust in the city, there are no known land conflicts arising from the absence of formal titles. Titling could, however, further stimulate the land market and increase the land values of properties for sale and mortgage purposes.

While the cadastral survey has been completed in Cagayan de Oro City, there were issues with the two cadastral surveys that led to boundary conflicts with adjacent municipalities and among barangays in the city. More specifically, there are minor overlaps between CAD 237 (undertaken in 1925) and CAD 369 (undertaken in the 1950s). CAD 369 was also found to be erroneous, as it contained a timberland area in the cadastrally surveyed area in the 1980s to the 1990s with A&D certification. Thus, the city is having a hard time using the projections from the cadastral survey results for its Comprehensive Land Use Plan (CLUP) due to the errors resulting from this exercise.

14Based on CLUPs 15Based on Assessor’s Office

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 12 Report on Integrated Land Tenure Assessment, September 2016 Despite the absence of more consolidated cadastral maps, both the DENR and the LGU estimate that the untitled parcels are about 30%. Given the number of land RPUs from the assessor’s office, this percentage translates to about 56,276 parcels. However, this is not consistent with the land tenure status maps at the DENR. Most titling in the past were secured through cadastral proceedings.

According to reports by the private sector, untitled properties are still prevalent in the barangays located in identified urban expansion areas in the CLUP:

Urban Expansion # 2 – West Uptown Development (Barangays Lumbia, Canitoan, Pagatpat). Based on the CLUP, this area shall be developed as a “medium to high density, mixed use pedestrian-friendly center with high end, low-density type of development for residential and commercial uses. The Lumbia Airport shall be converted into an industrial area/economic zone now that the Laguindingan Airport is operational.”

Urban Expansion # 3 – East Uptown Urban Development Area (Barangay Indahag). According to the CLUP, this area “will have the same function as that of the West-Uptown Development Area with the presence of high-end subdivisions like the Fil-Estate Subdivision and Alegria Hills. The area is characterized by the presence of a convention center, a government institution (Court of Appeals in Indahag), high-end residential, and heritage area (Huluga Cave in Indahag)”.

Urban Expansion # 4 – Eastern Urban Development (Barangay Balubal has untitled parcels, which is host to high end subdivisions).

Other barangays with untitled parcels are Iponan, Tagurao, Bayanga, Dansolihan, and Mambatangan.

Iloilo City

Iloilo City has complete cadastral surveys. Any missing records that were discovered were duly reconstituted by the DENR through projection of these maps, and filling in of the missing surveys. Because of good record management, and the active titling program of the DENR, it is estimated that the remaining untitled parcels represent only 7%, or about 11,219 parcels. There is one particular area that has potential for titling which is located in the accretion area in Barangay La Paz. The DENR has already surveyed the area in preparation for titling. Because of typhoon Sendong in Cagayan de Oro City which demolished all settlements in the accretion areas, however, the DENR has suspended any titling in these lands. The city government has other plans for the area and has not been issuing tax declarations to its occupants. Thus, the processing of residential Free Patent applications has been suspended by the DENR.

According to the DENR, most of the titles in Iloilo City were issued through the Courts (judicial titles). However, many of the titles remain under the name of the Republic of the Philippines. In some cases, the documented survey claimant are private persons, but nonetheless titled under the Republic of the Philippines. Such properties can be sold to actual occupants only through an authority to sell.

The DENR has confirmed that it has a list of properties titled under the Insular government, that are with the LGU. These need to have TCTs and executive orders of proclamations in order to properly transfer the properties in the name of the city.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 13 Report on Integrated Land Tenure Assessment, September 2016

Puerto Princesa City

The City of Puerto Princesa has been cadastrally surveyed. There are remaining large portions of its forestlands, however, that have not been classified (151,000 hectares, or 29% of its total land area). This makes the area vulnerable to speculation, illegal occupation, and public land applications, some of which are subsequently approved.

The cadastre of Puerto Princesa was completed during the pre-war period but there have been parts of the survey that proved erroneous leading to the titling of lands in timberland areas. Portions of the survey are within areas not classified as timberland and not subject to titling. The use of lands within declared timberland areas is a common practice in Puerto Princesa. The city hall, as well as the offices of DENR (PENRO and CENRO), and other government agencies, is located within the timberland. Since many offices are located within the timberland and protected areas, there have been many settlers occupying timberland areas where the occupants were able to secure tax declarations from the city government as proof of possession.

Both the DENR and LGU estimate that the untitled parcels in the city is high at 40% (or 26,281 parcels). These are mostly located in the city center. However, the DENR has issued a moratorium on titling and survey activities in the entire province due to widespread reports of overlaps, illegal titling, and other inappropriate practices.

Tagbilaran City

The land records of Tagbilaran City are in order. While the cadastral survey was undertaken prior to the war, the DENR managed to keep the records intact which has eased titling activities. The completed cadastre was used to aggressively title the properties in the city, resulting in 95% coverage. The titling program relied mostly on judicial proceedings and partly through administrative procedures, mainly based on the records of CAD 235.

As reported by the RoD, about 80% of parcels in Tagbilaran City were titled through the judicial process, while the rest were secured through administrative procedures and isolated cadastral proceedings. This is important to note, as titles secured through the judicial process are unencumbered. This means the properties can be mortgaged and transferred immediately after title issuance. Moreover, judicial titles can be issued in commercial properties.

Most of the government and LGU offices in Zamboanga City are in agreement that around 90% of the A&D lands in the city are already titled. Any proposal for a land titling program at this point is not a priority intervention for economic growth. In fact, while the DENR CENRO was given a target to issue residential Free Patents of over 434 parcels in 2016, the office is having difficulty finding these lands within the city’s 7 km. radius.

There were three cadastral surveys conducted in the city during the pre-war period. These are CAD 14, 18, and 124, although there were confirmed overlapping surveys and political boundary conflicts in the city.

There were reported cases of titling in ineligible areas, such as foreshore areas, in anticipation of the planned construction of a shipyard (Figure 2 – lot 4268 B). It was only learned that the titled area is over the coastline upon plotting the survey plans submitted to the LGU.

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Figure 2. Projection of Titled Property in Zamboanga City’s Coastal Area

C. Access to Land Information

The effective and efficient access to land information is essential for every land administration and management system. Parcel-based and up-to-date information on legal rights such as ownership, restrictions, allowable use, encumbrances, and governing rules and regulations are necessary for every transaction involving land. These legal rights go hand in hand with the technical specifications that identify the parcel and segregate the subject lot. Land valuation provides information for taxation, land market transactions, and determination of the highest and best use of the land. Scientific information is also important in planning and deciding how a parcel can be used sustainably.

All information necessary for the SURGE cities to plan for and take action on land-related matters are available in different government agencies and LGU departments. Availability, however, is different from access. The different land-related agencies each keep their own records in their own system. Unfortunately, access to this information is very difficult.

There is a lack of a national policy when it comes to land data. Each agency has its own practice when it comes to land information sharing. Through separate agreements such as MOAs and other partnership agreements, the SURGE cities were able to get limited access to land information, where available. Cadastral maps have been shared in some cities for their tax maps and their CLUPs but the information has not been translated to a unified system that can be accessed by the general public.

Although land information has been shared to the LGUs, the information is piecemeal and very limited, usually depending on the need of the LGU for specific projects. To make use of the information, SURGE cities sometimes need different systems, software, and operator capacities.

In the assessment discussions with private persons and representatives of private corporations, it was shared that the LGUs do not have the information that they require for their investments and land related activities. Private sector representatives have stated that they have to go to several departments and NGAs just to get basic information. According to them, information leading to land resources that meet their requirements is difficult to access even though they are

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 15 Report on Integrated Land Tenure Assessment, September 2016 known industry players. In other words, they have to resort to personal connections or political capital just to have the correct information that they need. For outsiders or those not familiar with local government officials, it will be nearly impossible to have access to the necessary information. A case in point is Zamboanga City, where an investor engaged in large scale development was trying to access information on ownership of parcels situated around the airport for a planned mixed use development. The assessor’s office, as well as other offices, cannot provide the information, so the investor had to forego the investment.

It has been determined that access to land-related information, even on a limited scope, can assist the LGU in planning and decision making. This access, however, will be of value to private individuals and corporations that deal with land either as land developers, or as investors requiring land for their businesses.

DENR policy on land data sharing

At present, the DENR has no clear policy on land data sharing with LGUs. The current database of the DENR is still paper-based. This limits access as there is a need for physical retrieval every time stakeholders need information. There are ongoing efforts to convert DENR’s paper-based land records into digital form and this is expected to be finished in three years’ time. Pending the population of its digital system called LAMS, the LMB is not keen on issuing the policy on land data access and sharing.

Minus the policy on data sharing, the DENR has, in the past, provided information to LGUs with land-related developmental projects. Through MOAs, the LGUs may be able to obtain limited land data. DENR data, however, are currently not accessible to the transacting public. Only data with reference to specific lots wherein the requesting person is a party to the transaction may be accessed. Proprietary data is confidential in nature. The determination of what can and cannot be shared to the public is, however, not yet clear and still the subject of policies being studied by the DENR-LMB. Access to DENR data may be the subject of individual agreements between the SURGE cities and the DENR or LMB. Such agreement will, however, be subject to availability.

Sharing of cadastral map and technical information

Cadastral maps are the basic requirements for any land titling activity. Before any land tenure activity can commence, cadastral maps need to be available. They are not only important for land tenure but are also key elements in RPT systems, in SMV, as well as in overall city development planning. These cadastral maps are normally available at the DENR offices. However, the availability of these maps are affected by the conditions of these maps. Since SURGE cities are relatively old, they had been cadastrally surveyed decades ago with some maps developed prior to the Second World War, in the late 1920s, and 1930s. As such, some are missing, incomplete or erroneous, and badly need updates or validation.

The DENR has shared maps that are available in their offices. However, as in the case of Batangas City, some cadastral maps are missing and are not available in any of the DENR offices that should have them. These are the LMB, the DENR Regional Offices, the PENRO and the CENRO. In instances where there are missing maps and erroneous technical information, the cities may need to request with the pertinent government agency to have the data reconstructed, validated, or cleaned. The DENR offices may have the facility to accommodate LGU requests. If there are no available resources for this, then the cities might need to shell out

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 16 Report on Integrated Land Tenure Assessment, September 2016 money to have surveys done. This might be the case for Batangas, Puerto Princesa, and Cagayan de Oro.

Status of computerization in DENR

The DENR, through the Land Management Bureau, has already commenced with the digitization and computerization of land-related information such as technical descriptions and public land applications. Upon the completion of the LAMS, the DENR may be able to share different data sets that can be produced by the different fields that they are collecting from public land applications and surveys. The information is parcel-based and can be spatially linked into a map. Such map is an excellent base map for LGU planning and decision-making needs. Installation and use in the regional offices of the DENR are at 100%. Data, however, are still being populated at the PENRO and CENRO level where most of the transactions are being done. It will take time before all the DENR field offices use the system.

Registry of Deeds data

The land titling computerization project (LTCP) of the LRA is complete with records in digital format. Most, if not all, land title records in the entire country with majority of the 129 registries are now online. With this project, it is expected that title-related transactions will be faster and more efficient but not necessarily cheaper. Currently, however, the SURGE cities have reported the tediousness in RoD transactions. In the cities of Puerto Princesa, Iloilo and Batangas, the RoDs have signified that they are willing to share information provided that there is approval from the LRA. In Puerto Princesa, the RoD has already shared information with the city in a previous project. The sharing facility, however, was prior to the new rules set by the LRA for data sharing. In the advent of the LTCP, the LRA has restricted data-sharing and has actually commercialized it through a private contractor. The LRA is a revenue earner for the government despite being a service agency.

For SURGE cities, the LRA has the facility to share data and information on all land parcels within their jurisdiction for a fee. If the LGU can afford it, the LRA can provide the necessary parcel-based data. Parcel-based data will be very useful in determining the availability of land for different uses. Moreover, it will help the LGU manage its land resources for land use, revenue generation, and regular sustainable use and regulation.

Different cities have varying degrees of access to land records from the DENR and RoD.

In Cagayan de Oro City, the LGU is not able to access records from the DENR, the RoD, and other agencies, despite efforts in the past. They expressed interest in securing these information and data to build a complete parcel-based information for the city.

In Batangas, the RoD is not fully computerized and only a fraction of their records have not been encoded and captured digitally. They have an existing arrangement with the assessor’s office on the forwarding of information and data of newly transferred titles and subdivided lots for tax declarations. The RoD clients were instructed to proceed to the assessor’s office to complete their transactions for the required tax declarations.

In Iloilo City, the RoD is now fully computerized. As a result, there is already an established electronic connectivity with the Bureau of Internal Revenue (BIR) through an agreement between the LRA and BIR. This ensures that the required certificate authorizing registration (CAR) is paid

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 17 Report on Integrated Land Tenure Assessment, September 2016 prior to registration at the RoD. The RoD expressed willingness to explore the possibility of connectivity with the LGU city assessor’s office (CASSO), provided there is an agreement with the LRA. As part of computerization, the RoD is already accepting an e-copy of subdivision plans. The developers undertake their own encoding, and submit the digital plans for approval. This has facilitated the bulk of the subdivision review and approval process on the part of the RoD.

Finally, Puerto Princesa City has a standing inter-agency MOA with land agencies in support of an earlier WB/AusAID assisted Land Administration and Management Project Phase 2, under the Innovation Support Fund. Under the agreement, the DENR and the RoD were able to share their land information with the LGU in building the city’s digital cadastral database (DCDB). This was made possible at a time when the RoD was not yet fully computerized through the Land Registration System Incorporation (LARES). However, now that all the RoD records are almost encoded in the system, such arrangements may no longer be possible as access to the records entails costs which may not be affordable to the LGUs.

D. Perception of Private Sector on Quality of LAM Services

Across all cities, private sector representatives involved in land (real estate professionals, land developers, banks, appraisers) have expressed the need for the LGUs and agencies involved in land administration to improve their services to hasten the enabling environment for property development.

If the cost and time to register a property in the Philippines were used as an indicator of ease of doing business, the Philippines is quite far behind its Asian neighbors in terms of both time and cost to complete a property transfer. According the to the World Bank Cost of Doing Business Report (2016), it takes on average, 35 days involving nine procedures, and 4.3% of the property value to complete such a transaction. In fact, the Philippines ranked 112 out of 189 economies in this indicator. This ranking is low compared to Malaysia (38), Thailand (57), Vietnam (58), and Lao PDR (66). The average for countries in the East Asia and the Pacific is 98 in terms of ranking. Only Indonesia is ranked lower than the Philippines at 131.16

Based on the 35 steps, the two procedures which took the most number of days were those lodged at the national government agencies:

BIR – securing certificate authorizing registration (with an average of 14 days or 40% of the time spent); and LRA/RoD – applying for registration (with an average of 10 days or 29% of the time spent).

Clearly, the LRA policy of processing all registration applications at the central office to come up with a consolidated parcel map is inefficient. The private sector has identified this as a key concern and one that constrains a more vibrant land market in the SURGE cities.

Based on exclusive focus group discussions, the following issues were raised by the private sector:

16World Bank, 2016. Doing Business 2016: Measuring Regulatory Quality and Efficiency. Economy Profile Philippines, 2016.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 18 Report on Integrated Land Tenure Assessment, September 2016 In Batangas City, the lone private sector representative interviewed during the assessment stated that there are currently no property listings. Investors have their own contacts with brokers, and therefore, there is no complete land inventory. They expressed support in having a land information platform to address this issue. They also cautioned that in order to make this happen, the LGUs, national government agencies, and the private sector must work together. Moreover, the land information platform should have reliable, up-to-date information, and reflect the current market values of properties for it to be useful.

In Cagayan de Oro City, one of the concerns raised was the delay in the HLURB approval of the CLUP. This affects the value and amount of payments due on properties being sold. For example, differences between the classification of property between the assessor’s office (based on actual use) and the CPDO (based on land use plan) would have implications on the taxes due on transfers. Commercial use would fetch higher land values than residential lands. Suggestions were made to synchronize the records of the assessor’s office and CPDO to avoid confusion.

Additionally, because of delayed HLURB approval, the planned zoning of agricultural lands to residential cannot be implemented, as required or needed in many subdivisions or settlement areas in the city. For instance, an investor from Cebu was looking for 41 hectares of land. When located, the land was found still designated as agricultural in the CLUP even if its actual use is already predominantly residential. This caused substantial delays in securing the required development permits before the actual land development started. In the same manner, the location of the old airport in Lumbia has already been designated as residential but there are still many certificate of land ownership awards (CLOA) holders in the area.

The private sector also raised a number of inter-related issues on registration which hamper investments:

Presence of multiple titles on prime land thus, making land acquisition problematic. Examples include commercial properties with three owners on the same parcel, all with original certificates of titles (OCTs). It took a lengthy court case before the other two titles were dismissed in court;

Resolution of land cases is slow. A case was mentioned on the cancellation of titles with the Solicitor General which has taken 10 years already, but has not been decided upon. Another case was mentioned on the lengthy process of registration in the LRA central office in City which has taken two years already but has not been acted upon despite a court order.

The City RD has been known as a hotspot by brokers and appraisers because of missing titles, employees’ attitude, and other factors which make transactions difficult. Brokers and appraisers attest to the high cost of land registration which require people to hire somebody who knows the system. There are cases of informal payments made to facilitate processes. To address this, the Socialized Housing Developers’ Association (SHDA) and Philippine Association of Real Estate Brokers (PAREB) sought an audience with the LRA administrator to complain about the problem. In the CDO RD, there are cases where it takes too long to complete transactions. For example, a request for a certified true copy (CTC) of titles would require one year when the published time to complete it is only two days. In other cases, transfers would take two years and eight months when the published time to process is 22 working days.

In a rapidly developing part of the city such as in Lumbia which is the site of the old airport, there are many properties without titles. Owners only have tax declarations as proof of ownership.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 19 Report on Integrated Land Tenure Assessment, September 2016 These would also require conversion since the current use is still agricultural but were classified as residential in the more recent CLUP. Moreover, these constrain investments.

Titling of commercial lands has become very expensive due to the recent policy of the DENR to use market values for titling under the Miscellaneous Sales Patent (MSPs). In the absence of updated SMVs, the BIR zonal values are used as basis for valuation. These are set at very high rates but do not have sufficient basis. Landowners and buyers, therefore, prefer the judicial process even if it takes longer to complete. The commercial areas in CDO are those located along CM Recto, Velez St., and Osmena St. which have very high zonal values. In fact, SM backed out of a prospective investment in favor of Ayala because of very high zonal values. Relatedly, the CASSO uses the zonal values of BIR for taxation purposes and payments of transfer taxes. This is the effect of having multiple valuation, and not having up-to-date values based on proper methodologies indicated in the Philippine Valuation Standards.

For example: a commercial property in Dolores would have the following values: BIR zonal value = Php30,000 per sq. m. LGU assessed value = Php10,000 per sq. m. Selling price = higher than the zonal value

There are huge backlogs in housing provision in the Philippines (estimated at 1.3 M) and in Cagayan de Oro (estimated at 80,000 units). However, there are 23 agencies involved in the provision of housing. The participants proposed the establishment of a one-stop shop to fast track housing in CDO.

Setting up an integrated land information system will be useful for land professionals (brokers, realtors, and appraisers), and investors as well. However, there should also be a website in the LGU showing all development projects of the city, such as zoning plan, and future plans for water services, road improvement and drainage improvement, among others.

While tenure security does not affect the robustness of the land market in Iloilo City, the private sector is concerned about the lengthy processes for securing zoning clearance, the processing of development and building permits, and the conversion of agricultural lands. The latter is critical since Iloilo has very limited lands. The only way for horizontal expansion to accommodate demand is to convert agricultural lands located along the fringes of the city and neighbouring towns. Securing DAR clearance for land conversion is too centralized because all applications are reviewed by the DA central office.

Other concerns include the following:

Arbitrary determination of zonal values by the BIR. While it is required to set up a valuation board, in practice, the BIR will invite banks/ private sector to submit their proposed levels of assessment. The BIR will then compare these with their own values, and adopt their own.

Need to compare RPT level in Iloilo City with other cities. There is a perception that in Iloilo City, RPT levels are too high but collection rates are low.

Auction of delinquent properties need to proceed. While the city LGU undertakes regular auctions, in practice, negotiation is the norm which negates the very intent of auction.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 20 Report on Integrated Land Tenure Assessment, September 2016 Lax implementation of zoning regulations. The city zoning board has no teeth. There are too many violations and the most that can be done is to impose a maximum penalty of Php5,000 per violation.

High cost of capital gains tax (CGT) and the long time it takes for the BIR to release the Certificate Authorizing Registration (CAR). In many instances, this takes up to two months.

Some developers are able to get contract to sell without titles.

Complicated processes in securing an Environmental Compliance Certificate (ECC). For example, to secure a certificate of non-coverage (CNC), takes three months as in the case of liquefied petroleum gas (LPG).

Local developers also expressed concern that the entry of large developers such as the SM group, Ayala Land, and the Villar group has jacked up land prices in the city. This has left behind local developers in property development. Moreover, the locals cannot compete with large corporations because their main offices in Manila are able to “buy” CLOAs and Emancipation Patents (EPs) which are beyond the capacities of local developers. An example was given in the case of the areas within the SM development project which are covered by Department of Agrarian Reform (DAR)-issued EPs.

There is support for the establishment of an integrated land information platform but to be useful, it should have reliable, up-to-date information, and should reflect the true values of the properties. There is a prevailing culture among “Ilonggos”, however, who prefer not to advertise their properties for sale.

In relation to all of the above, suggestions to improve the enabling business environment for a robust land market are the following: Improve procedures for issuance of building permit; Reduce bureaucracy in the issuance of zoning clearance; Computerize the land records at the assessors’ office because some ledgers are missing and Improve the process of the issuance of occupancy permit.

In Puerto Princesa City, the private sector has expressed concern over bureaucratic procedures in the BIR and RoD in securing CAR and registering properties, respectively.

The city welcomes the idea of developing an integrated land information platform and lodging it at the Local Economic Investment Promotion Office (LEIPO). This will enable prospective property buyers, investors, and other real estate practitioners to avail themselves of reliable data and information on land in the city. This will also address the very low confidence in the existing titles and registry due in part to the proliferation of illegally issued titles. Occupancy in timberlands is rampant and should be addressed by the DENR and other concerned agencies and the city government. This practice was a result of land speculation, fueled by lack of adequate information on the metes and bounds of the timberland area, and the connivance of some government staff.

Similar to Puerto Princesa, Zamboanga City has too much red tape particularly in the BIR and the RoD. The value of lands at the LGU assessor’s office is eight times lower than its actual market value. A recommendation is to regularly update the values every three years.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 21 Report on Integrated Land Tenure Assessment, September 2016

There is a vibrant land market activity in Zamboanga even as most large Manila and Cebu-based developers have not invested much in it due to a perception problem brought about by the peace and order situation in the region. This is mostly due to rich Muslim families from the neighboring islands of , , and Tawi-Tawi. This, however, has caused some concern for Zamboanga-based developers as the land prices have increased by about 150 times their actual market values due to demand. Most of these transactions are paid for in cash. A suggestion was made for SURGE to undertake a land markets study to understand the drivers of land market activity in the city.

The enormous backlog in the city shelter program is a cause for concern given the scarcity of lands for other land uses, particularly in the new growth center in the Mercedes area.

E. Related Programs

Only Batangas City has an active LGU-led titling program among the SURGE cities. This was initiated under the USAID Property Rights for Economic Reform Project (PREP), and has been continuing albeit, at a slower pace compared to the task at hand. Lodged at the city ENRO, Batangas has established a land management council composed of land-based government agencies (DENR PENRO, RoD, DAR, clerk of court), and LGU offices (LGU assessor, CPDO). The land titling operations is working on residential areas identified by the city ENRO together with DENR, supported by a private licensed surveyor.

Operating since 2014, the city anchored its titling program on RA 10023 which they called “Door to Door Program”. The LGU shouldered most of the costs associated with the application and processing of titles, from survey to registration. The program has no priority barangays but services are delivered on a first come, first served basis, with eligibility as the main criterion for acceptance.

Based on the city ENRO’s record, there were 62 titles registered and distributed to beneficiaries as a result of the program. Moreover, according to their research, the potential number of lots for titling in the city is around 7,300 located in 105 barangays but concentrated in 24 poblacion17 nine urban and nine rural barangays18. Out of these 7,300 potential lots, 500 have approved survey plans with house-to-house Information, Education and Communications (IEC) campaign, with collected data and land-based information. A complete parcel inventory and access to all missing records will validate these estimates.

The main issues encountered in the implementation of the program are as follows: Missing land records; No cadastral maps; Adverse claims/adjudication proceedings; Use of third party surveyors with their own records; Around 200 lots with no survey records, lost or missing; and Land classification and land use conversion.

17Poblacion is a center of a municipality in the Philippines, usually the barrio that gives the municipality its name and is the seat of government. 18Barangay is the smallest administrative region in the Philippines.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 22 Report on Integrated Land Tenure Assessment, September 2016 The program could be fast tracked and implementation be made more cost effective. There is, however, a need to guide the city in the development of a land tenure improvement strategy and plan, that also addresses how the land records can be reconstituted, with community participation.

Cagayan de Oro City has an ongoing Memorandum of Agreement with the DENR for the implementation of a DENR-LGU land titling program. Under this partnership, the DENR trained some adjudicators of the city but due to changes in leadership, they were transferred to other assignments and the program was not prioritized. During the course of the assessment, CDO department heads expressed interest to reinvigorate the partnership agreement to proceed with a land tenure improvement program.

Tagbilaran City has a standing MOA between and among the DENR, LGU Tagbilaran, RoD, and other government offices which spells out the agreement to facilitate and effectively coordinate land administration and management functions. The MOA is a good starting point to strengthen interconnectivity among the land-based agencies and offices and mutually take advantage of sharing land information to increase transactions and assist clients and real estate practitioners. This could be pursued under SURGE to serve other needs for SMV updating, tax mapping, and improved RPT administration. The good relations among agencies can also be used to set up a land information system to serve the general public and stakeholders of the land market.

The DENR in Zamboanga City is implementing residential titling in the city as part of the regular program of the department. However, the DENR CENRO has difficulty meeting its target due to the very few remaining untitled parcels distributed all over the city. Most of these are located outside the 7-km radius of the city proper.

Titling cannot proceed in Antipolo and Puerto Princesa due to the moratorium issued by the DENR. In the case of Antipolo, the records are not in order and a large part of the city is affected by a proclamation. This is why titling is done sporadically. In Puerto Princesa, titling has been suspended because of complaints of illegal titling, overlaps, and duplicate titles. As of this writing, the Land Management Bureau (LMB) has forwarded a recommendation to the DENR secretary to renew titling activities, subject to safeguards.

F. Status of City-Owned Lands

The LGUs have the power to acquire real properties. Such acquisition can be through any of the means provided for by law. All of the SURGE cities own valuable real estate. These properties may be tapped by the LGUs for different governmental and proprietary requirements. For all the SURGE cities, it has been assessed that there is a need to improve the real property asset management when it comes to city-owned properties. Although the general services department (GSD) of the LGUs have a list of city-owned lands and serve as the repository of tenurial instruments, the GSD does not actually manage the parcels. The GSD’s list, however, does not provide updated information on actual use, locations, and in some cities, complete inventory and tenure status. The determination of the highest and best use of city real property assets rests with the office of the Mayor.

It is not uncommon in the SURGE cities to have untitled parcels currently in the possession of the LGU. Although in the possession of the city, some lands are not being used. Some are being used but are not optimally being managed. Lack of tenure security for city-owned properties may

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 23 Report on Integrated Land Tenure Assessment, September 2016 lead to problems with the COA as government entities are required to have security of tenure over lands before spending money for their development. Worse, the city might get dispossessed if they are not secured in their ownership of these lands.

Properties owned by the city in its proprietary capacity may be used for economic enterprises. Such is the case of Zamboanga wherein they have a couple of properties that they can offer to investors for lease. Properties may also be used for swapping to other more favorable parcels and may even be used as collateral for city investments. However, without tenure security, the city might have difficulties in using these lands.

To be able to identify the highest and best use of the land, it is important that the SURGE cities have an inventory of the properties and a list of the actual use of these properties. A conscious decision should be made to sort out the present use of these properties and determine if such use is the most beneficial for the city.

City-owned properties that need titling or other forms of tenure security need to be dealt with as soon as possible. With the approval of DAO 2016-21 “Guidelines Governing the Processing of Requests for Proclamations and Issuance of Special Patents Over Agricultural Lands”, there is a new set of streamlined rules that the LGUs can use so that untitled parcels of land can finally be titled in their name.

Forfeiture of auctioned properties for failure to pay delinquency RPTs is also one way for the local government to accumulate land properties. However, a number of LGUs have encountered challenges in the transfer of titles in the name of the city due to the high capital gains taxes that need to be paid. Iloilo, for example, has been regularly undertaking auction but most of these eventually end up being negotiated with the property owners, resulting in redemption. Eventually, as SURGE cities undertake auction as an administrative recourse to improve RPT collection, the transfer of titles and management of these properties by the cities need to be properly addressed.

In Batangas City, there is no physical inventory of city-owned properties. Titles of these are with the general services office (GSO) for record keeping but there is no dedicated unit designated to manage these assets.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 24 Report on Integrated Land Tenure Assessment, September 2016 Table 6. City-Owned Properties in Cagayan de Oro

Cagayan de Oro City has an existing inventory of its properties but needs to continue identifying the location of LGU-owned properties and deciding on its highest and best use. It is also essential to organize a committee for proper management of these lands (Table 6). In all, there is a total of 1,787 lots covering an area of 509 hectares and with market value of close to Php9,575.3 M. The substantive size offers an opportunity for the city to encourage investments to develop city- owned properties.

In Iloilo City, there is a significant number of LGU-owned properties that are not yet titled. The city needs to further develop these properties following its CLUP. It is estimated that these could reach 10 hectares, majority of which are agricultural and educational. Most of these have also been appraised by the assessor.

Puerto Princesa City needs to locate and profile city-owned properties. Aside from securing titles, there is also a need to create a management committee.

Tagbilaran City has a complete list of city-owned lands but it needs to locate, profile and develop a strategy for their proper management.

In Zamboanga City, most of the city-owned government lands are titled. There is, however, no complete inventory of their current status, location, and profile. There are also no current plans to use them.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 25 Report on Integrated Land Tenure Assessment, September 2016 G. Land Tenure-Related Issues

Most of the land tenure issues faced by the SURGE cities can be traced back to the poor management of land records (missing/lost, incomplete, duplicate). Moreover, there is no synergy in the functions and actions of national government agencies involved in land administration. These manifest strongly in the difficulties faced by the city governments in creating conditions to spur economic growth and improve public service.

Antipolo City

There is no complete picture of all the parcels showing the tenure status in the city. The LGU has a tax map of all land RPUs; the RoD has records of all titled properties including judicially titled parcels; and the DENR has textual records of FP applications and titles that they have issued. Thus, there is no control map that shows all the parcels with updated ownership information. It is, therefore, impossible to have an inventory of titled and untitled parcels in the city. This is extremely difficult for land tenure improvement planning.

Land conflicts and issues are common within the city. This is true for old communities like Antipolo with cadastral maps approved during the pre-war era. Among the more common challenges are: overlapping titles; double titles; multiple claimants; untraceable rights from original cadastral claimants; fake and spurious titles; informal settler occupation; illegal consolidation; illegal occupation of forestland, watershed, national parks and mineral lands; and boundary disputes and family disputes over inherited land.

There were anecdotes of land grabbing by developers and landed, political, and wealthy families. In order to address the above, the DENR requires all applicants for original titling, to secure from the RoD, a certification that the parcel being applied for does not overlap with an existing title in their records.

There were several proclamations that were issued covering Antipolo City, which gave rise to overlaps and speculation. One of these involves 20,312 hectares of the Lungsod Silangan Townsite Reservation that encompasses the adjacent municipalities of San Mateo and Montalban (now Rodriguez), . About 5,700 hectares of these are occupied by 500,000 informal settler families. The idea behind the proclamation is for the government to proceed with subdivision, disposition, and settlements planning. However, because these were not done, occupants submitted individual applications for titles without a cadastral survey. The applications were supported by isolated surveys, making it difficult to keep track of which parcels have been titled and which ones are not. Since there are two titling options (judicial with the courts and administrative process with DENR), and the agencies responsible for issuing these titles do not have consolidated maps and do not share their records. Overlapping, duplicate, and spurious titles were also issued. Titling within the confines of the Lungsod Silangan was suspended through Memorandum Order 72 dated September 9, 2002.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 26 Report on Integrated Land Tenure Assessment, September 2016

The DENR does not have a complete set of cadastral maps for Antipolo. Some were lost due to the transfer of records from the LMB to the regional offices and back; others were misplaced and destroyed due to the war, and upon transfer of offices. Thus, it is not possible to undertake systematic titling in Antipolo City. Existing survey records were mostly in paper form. Some are not in very good condition and are deteriorated. Applications are lodged in index cards and not projected on a master map.

Batangas City

In addition to the huge problem caused by lost or missing survey records which resulted in difficulties and delays in titling, the use of tax declarations as proof of possession during the auction of delinquent properties, will not legally result in forfeiture in the absence of titles. There were also reported cases of political boundary conflicts between barangays. Surprisingly, land disputes are few as the Batanguenos have a high level of trust in the tax declarations, and respect for ownership on land claims.

Cagayan de Oro City

The land tenure issues are similar to Antipolo but take various forms. As a consequence, this impacts the city’s performance in different ways:

Boundary disputes with other LGUs. This is acknowledged as one of the key urban development issues in the city CLUP. The recorded conflicts are between the CDO City and Claveria and ; CDO and ; and between barangays in CDO. These need to be validated on the ground and resolutions need to be developed, in order to firm up the LGU territories and the basis of the IRA. The DENR reported that these conflicts are hotly contested so a mediated resolution is required. There is incomplete delineation of barangay boundaries. There are overlaps between two cadastral surveys which could render the affected area of the city under question and the parcels within of doubtful origins. This could also lead to duplicate titles. There are overlaps and duplicate titles, multiple titles on the same lot (Free Patent, judicial titles and CLOAs), including lots with many adverse claims The registration process in CDO RoD is difficult. An integrated land parcel map which depicts the complete picture of all land tenure and parcels in the city is not available. The number of parcels between CPDO maps (140,457 parcels) and assessors’ office (88,000 land RPUs); and DENR with 350,000 parcels are inconsistent. The Forest Land Boundary Delineation (FLBD) has been completed using ground survey with a global positioning system (GPS) using geographic coordinates (latitude and longitude coordinates). However, when the FLBD maps were projected into LC maps, there is a difference of around 1.2 kilometers. There are Spanish titles that have not been surrendered on the date due in 1977 to 1978. There is conflict between informal settlers vs. land owners with demolition orders There are many claimants with tax declaration only lots with multiple tax declarations. In Bulua, 1000 parcels in a former military reservation/facility are subject for residential titling.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 27 Report on Integrated Land Tenure Assessment, September 2016 Because Cagayan de Oro City has a large forestland area, there are portions covered by indigenous people’s claims. One Certificate of Ancestral Domain Title (CADT) application that is in process, was lodged by the United Higaoonon Tribal Association, covering more or less 20,000 hectares. Accordingly, the claim covers part of Lumbia, site of the old airport, which is now a rapidly developing section of the city, and whose land use has been classified by the city government as predominantly residential. The exact location and metes and bounds of the claim have not been delineated as the process has just started with community preparation. It could take a number of years before the CADT is finally awarded. In addition, the area claimed has known overlaps with CLOAs and an expired community based forest management (CBFM). There are also existing pasture lease agreements and small scale mining operations in the area. This, however, needs validation if these fall within the boundaries of the Higaoonon ancestral domain. The delineation process under the CADT will determine the extent of these overlaps. Its potential risk this on other titles, tenure instruments, and claims need to be closely monitored too.

Another potential issue is information shared by the National Commission on Indigenous People’s (NCIP) director regarding the unclear ownership of the property where Pryce Hotel is located. It is apparently owned by the Department of National Defense (DND) but remains untitled. The agency still has the right to claim the property now that portions are abandoned and not operational. The issue is that there could be other lands in identified growth areas where ownership and titles have not been secured.

All of the above can be gradually resolved only through a complete inventory of all parcels – both in A&D and in forestland. This is in order to clear claims and ownership rights, thereby reducing conflicts, resolving overlaps, and ensuring an equitable land tenure for all entitled.

Iloilo City

In Iloilo City, there were reported cases of parcels having multiple claimants. Moreover, some of the city’s 180 barangays have boundary disputes which have not been settled. Finally, the CLUP is not linked to a cadastral map. Additional work needs to be done to ensure there is consistency between the two maps and the area referred to in both documents.

Puerto Princesa

The root causes of the city’s land tenure issues have to do with the incomplete land classification of forestlands and the erroneous surveys that were undertaken as basis for titling. Coupled with improper practices in titling, these resulted in the moratorium on titling and surveys in the city.

Thus, the following issues: Reported cases of illegal titling in areas and in unclassified public forests. There were erroneous surveys which led to titling of timberland areas. The use of lands in the timberland is quite a common practice. In fact, the new city hall is right in the center of the timberland area. This is also true in the area where DENR offices (PENRO, CENRO) and other government agencies are located. Since many offices are located right within the protected areas and timberland, there were many settlers occupying timberland where the occupants were able to secure land tax declarations as proof of possession.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 28 Report on Integrated Land Tenure Assessment, September 2016 There have been speculations on the land market raising the land prices even in lands without titles yet. This has caused confusion as to whether the land is A&D or located in protected areas.

The situations cited previously in the cities erode the confidence of investors and the general public on the reliability of the registry. The bureaucratic processes also make purchasing properties expensive. There has to be some degree of caution and validation to ensure that the property is free from encumbrances, counterclaims, and conflict.

III. General Recommendations

A. Establish Unified Land Information System (ULIS)

The assessment has shown that at the root of land tenure issues is the absence of a good records management system, inconsistencies of records among agencies, proliferation of land records and duplicates between agencies due to overlapping mandates, and poor quality of surveys, among others. Thus, a key recommendation is the setting up of a unified land information system (ULIS).

The ULIS is a system that aims to consolidate all land related information of all parcels of land within an area. To have a ULIS for an LGU, a Geographical Information System (GIS) is essential as the platform in developing the ULIS spatial information. For the SURGE cities, it is envisioned that such a system will be a ready tool for policy makers, decision makers, technical persons, as well as private sector managers and investors. Such a system will provide ready access to information that is necessary for land transactions without the need to do the rounds of NGAs and LGUs. The system intends to provide a single access point for all information that an investor needs for a project. The city assessments have shown that investment opportunities have been lost because of lack of information or lack of access to information on land related matters. Currently, no such system exists in the SURGE cities. It is recommended that a system be put in place, preferably in the LEIPO, where investors and developers and all relevant stakeholders can obtain land related information. Such a system may be a stand-alone system or an adjunct to the city’s GIS.

Current SURGE GIS efforts can pave the way for an updated and spatially accurate ULIS. The integration of land related information in the cities’ GIS will make the development of the ULIS easier and more cost effective for SURGE and the cities. Developing the ULIS in coordination with GIS experts will lessen the necessary work for the establishment of the ULIS.

Access to the ULIS can be custom-made depending on the information collected and integrated in ULIS as well as on the information the city is willing to share within the LGUs and with the transacting public. System maintenance can vary depending on the LGU. It may be maintained by the LGU alone, or with the cooperation of industry players in the land sector.

It is recommended that all SURGE cities explore the possibility of creating a ULIS in conjunction with the GIS.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 29 Report on Integrated Land Tenure Assessment, September 2016 In support of the ULIS, it is essential to put in place an inter-agency coordination mechanism to secure the cooperation and agreements among all related land agencies to share land data and information. Such mechanism can have added functions such as providing a platform for discussing and resolving land related issues in the city. Currently, these are within the purview of national government agencies.

B. Titling to harness the potential of land for investments

Secure property rights have always been at the backbone of property right and land markets. The concept of securing land titles to prove ownership is only partial as the true power of land titles lies in the ability of property rights owners to exercise true ownership. It is universally accepted that ownership has a bundle of rights that are appended to it. A property owner has the right to possess, use, and transfer the property as he or she sees fit. The use and enjoyment of property, however, is diminished when ownership is questionable and rights are not secure. As such, for a vibrant land market where investments in property development and investments in land are a major consideration for business, it is necessary to secure property rights through titling.

The cities of Tagbilaran, Iloilo, and Zamboanga have a reported 90 to 97% of A & D land parcels already covered by land titles. This situation is more of an exception to the normal situation of other LGUs. As such, these three cities are not candidates for land titling activities.

In the case of Batangas City, only about 30% of the city’s A&D lands are reported to have been titled and registered. Potential land parcels that may be subjected to titling are at 70%. This city, however, is unique among the SURGE cities because it currently has a working land management council composed of officials from the LGU as well as from land-related NGAs. This council, organized with assistance from the USAID Advancing Philippines Competitiveness (COMPETE) project, oversees the implementation of an LGU-led titling activity targeting residential lands within the city. In as much there are already efforts within the LGU to have parcels titled, it is highly recommended that SURGE provide assistance to improve the current LGU-led titling to make it more efficient and cost-effective through the systematic adjudication approach. Two pilot urban barangays will be identified to establish a city-specific set of procedures that can be rolled out to the other barangays. The SURGE Project can prioritize pilot barangays and provide technical assistance to obtain missing survey records in preparation for titling.

Puerto Princesa City needs to prioritize land titling. Only an estimated 60% of A&D parcels are reported to be titled. The low number of titled parcels can be ascribed to the reported problems in survey and other technical data. These technical problems, however, may be answered by technical solutions that are available at the DENR and the RoD. The main stumbling block in securing property rights in Puerto Princesa is the existing ban on the acceptance and processing of land patent applications as well as the issuance of land patents in the entire province. Until and unless the DENR moratorium is lifted, SURGE can only provide assistance in data cleaning and preparation works for land titling.

It is suggested that systematic land titling be done in the cities of Cagayan de Oro, Puerto Princesa, and Batangas in pilot barangays. With many untitled properties in these three cities, it is recommended that during action planning for each of these cities, pilot barangays with the largest number of untitled properties be targeted or prioritized for assistance. Such titling activities will be phased within the five-year project term while focusing on priority land tenure

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 30 Report on Integrated Land Tenure Assessment, September 2016 activities which have more impact. At least two to three pilot barangays will be identified and prioritized. Selection of priority areas or barangays for titling is not only a SURGE-LGU decision but the DENR will be consulted. Unit costs on titling must also be seriously reviewed at the start together with the DENR so that a program with greater impact can be achieved.

At the barangay level, once the project undertakes the Rapid Land Tenure Appraisal, it will be beneficial for promotions and advocacy if USAID personnel participate in a meaningful way.

Lastly, the poor are always at a disadvantage on land tenure security so special considerations are needed. This means making RPT declarations easy, simple, and low cost. There must be a land regularization program for the poor where suitable lands exist.

C. Management of government lands

It is suggested that a full inventory of city-owned lands be developed with the identification of its current use and tenurial status and for SURGE to provide technical assistance in having tenure security for untitled government lands.

All of the SURGE cities own a number of government lands. These city-owned lands, however, may not be fully used as there are no specific department that deals with the actual asset management of these city-owned parcels. The GSOs have a list of these but there is no actual profiling to determine the actual condition and current use of these lands.

The city would know that the lands exist but their current status remain undetermined. These parcels may be a good addition to resources that can help the cities in their governmental functions as well as in their economic activities.

It is suggested that all cities develop an inventory of all city-owned lands that reflect the tenurial status and current use to be able to identify untitled parcels. This way, SURGE can assist in securing titles.

D. Addressing land constraints

Land is a limited resource and its area is determined or determinable. Although this resource is shared by the government and its ever-increasing population, there are still lands that can be made available for specific needs of the cities. Land supply may be finite but using different modes of acquiring land can increase its availability. Land for housing and resettlement, as an example, can be made available through a direct grant by the national government by applying for special patents or through acquisition by sale. LGUs can also tap lands that are acquired through involuntary tax delinquency sales or by voluntary transfer to the LGUs by donation or bequest.

Land banking, as a conscious activity of the LGU, can ensure a constant supply of land for government use, or for the expansion of economic activity. Future sites for ecozones, industrial areas, commercial hubs, government centers, residential areas, agricultural spaces, and expansion sites can be managed by the LGU by securing these areas prior to occupation or densification. Securing the availability of land resources can greatly facilitate the LGU’s development planning process.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 31 Report on Integrated Land Tenure Assessment, September 2016 It is suggested that the cities identify their land resource requirements and match these with readily available lands to determine how to augment their needs if necessary.

It is necessary for a questionnaire survey in year 2 of SURGE to solicit information from representative parts of society and business on land tenure security in their city, urban, peri- urban and rural areas. The results could give a greater impetus to SURGE to pursue such initiatives as the LIM Platform (ULIS) and related services and land information management. The results could also give a greater focus on quality of land records and also yield an expanded agenda for LGU – central government dialogue. The questionnaire should also address the barriers to formal lending institutions (as opposed to an informal credit system) like producer’s banks with access to credit. This can be done by using land titles as collateral for crop and livestock production. This is especially relevant to land owners with little or no education and limited capital for business and investment purposes. The impacts on economic competitiveness and on social equity should be derived for different sectors of society and business.

The role of land development in the value capture chain is also a key to better governance of cities, including land conversion taxation.

E. Preparation of land tenure improvement plan for new growth areas

The identified new growth areas in the SURGE cities are the new areas for master planning that have the potential for the efficient utilization of land resources. It is recommended that a land tenure improvement plan be developed for new growth areas in each city and harmonized with the city’s CLUP. The land tenure improvement plan will prepare the growth area for the expected influx of land-related transactions. The plan will help identify the allowable uses, the restrictions that may affect the land parcels, as well as the tenurial status of all parcels in the growth area. The improvement plan will contain the proposed next steps that may be taken by the LGU to prepare the identified area. Such a plan will provide invaluable assistance for LGU decision makers, as well as investors and locators, in identifying and determining the proper use of the land resource and if the available land resource will fit or match their requirements.

The plan can be synchronized with the titling activities such that new growth areas are given priority in titling and resolving land related issues.

Table 7. Summary of Proposed SURGE Intervention on Land Tenure CITY ULIS Land Titling Management Addressing Land Tenure of Constraints to Improvement Government Land Availability Plan for new Lands growth areas

Batangas ✓ ✓ ✓ ✓ ✓ Cagayan de ✓ ✓ ✓ ✓ ✓ Oro

Iloilo ✓ ✗ ✓ ✓ ✓

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 32 Report on Integrated Land Tenure Assessment, September 2016 CITY ULIS Land Titling Management Addressing Land Tenure of Constraints to Improvement Government Land Availability Plan for new Lands growth areas Puerto ✓ ✓ ✓ ✓ ✓ Princesa

Tagbilaran ✓ ✗ ✓ ✓ ✓ Zamboanga ✓ ✗ ✓ ✓ ✓ Antipolo ✓ ✓ ✓ ✓ ✓

IV. City Specific Recommendations

This section will discuss city-specific approaches to address the results of the assessment, in addition to the common interventions identified above. In particular, the approaches to tenure security and/or titling programs will differ, given the specific circumstances and issues in each city.

A. Antipolo City

The first step in Antipolo is to coordinate with the DENR and LMB for the lifting of the titling moratorium. The city can also negotiate to allow titling and alternative land dispute resolution activities to take place in pilot barangays which are outside the highly contested proclaimed areas in Lungsod Silangan.

The overall approach is to implement a land tenure improvement plan for Antipolo City aimed at: developing a publicly accessible and integrated land information platform that will provide clarity on ownership, status, and other land related data; improving titling coverage through piloting in selected barangays; and improving tenure security by resolving disputes through community-based alternative mechanisms.

Establishment of Unified Land Information System

It is clear that for any land tenure improvement planning to proceed, it is essential that a good inventory of land tenure status be undertaken. Because the records are scattered across various agencies, the LGU, RoD and DENR, it will be important to secure relevant information from these agencies to come up with a complete picture of all parcels in the city. Developing a consolidated cadastral map through a commonly shared platform will be useful for the LGU, DENR, and RoD to dispatch their functions more efficiently and effectively.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 33 Report on Integrated Land Tenure Assessment, September 2016 The following map overlays are proposed:

Table 8. Proposed Map Overlays Types of Maps Source Purpose/Use Map 1 – A&D and NAMRIA To validate if all titles are within public forestlands A&D lands; otherwise, these are considered erroneous Map 2 – cadastral and LMB, DENR Regional and To reflect gaps in the survey and subdivision surveys PENRO determine if it is necessary to conduct a resurvey, reconstruct missing survey records Map 3 – titles issued by DENR PENRO To determine gaps in administrative titling DENR Map 3 – LGU tax maps LGU assessor’s office To capture all the RPUs with title declarations, and compare with titles administratively issued by DENR

Map 4 – title records RoD To determine the parcels with titles and and/or projections from Note: This might be difficult to derive information on the parcels without LRA secure without payment of titles corresponding fees

It is suggested that the above process be undertaken in one or two pilot barangays to demonstrate how this can be done. The results can then be used and processed as catalyst for greater cooperation among the agencies and the LGUs. The results would be most useful to the LGU as these would improve the real property records of the city, thereby enabling them to increase their RPT collections. There are also multiple applications of such an integrated land information system namely, a more accurate CLUP and updating of SMVs.

The map shall be supported by a land information database that will describe the status and provide relevant information for each parcel.

Improving Titling Coverage and Resolution of Disputes

Using the maps and land information system in the two pilot barangays, a composite land titling team shall be organized composed of LGU (city and barangay), RoD/LRA and DENR representatives to undertake community based systematic adjudication process. A rapid land tenure appraisal shall precede this activity to validate the land information.

The barangay justice system shall be activated and trained in the land dispute resolution process. This shall provide back up support to the composite land titling team to adjudicate land claims on the ground.

B. Batangas City

The main drawback to a city-wide security of tenure program is the lack of reliable survey records and cadastral maps. Thus, efforts and resources must be aimed at reconstructing maps and survey records, if possible, or a new cadastral survey, if feasible. This is to support the LGU and the private sector (developers, brokers, real estate agents, etc.) land-based property development within and outside the city proper. Both the LGU and the private sector recognize the importance of removing the obstacles to have a well-functioning land market.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 34 Report on Integrated Land Tenure Assessment, September 2016

The titling backlog is huge. If the parcel records of the assessor’s office were to be used as a parameter, about 90,000 lots need titling. A key strategy is to remove the major obstacle to titling and then demonstrate a cost-effective procedure in pilot barangays to enable the city government, working with the land management committee, to roll out the process on their own.

There are several options to address the issue of missing survey records:

Option 1 – Request the DENR to include in their budget a resurvey of the city or portions of the city where missing survey records have been identified.

Option 2 – The city government could undertake the cost of re-survey, and setting up a mechanism whereby the cost can be passed on as a liens or an encumbrance to the title, if the property owner is unable to pay.

A disadvantage of the first option is that based on information from the LMB, the cost of resurvey in Region IV A is not included in the proposed 2017 budget. This means waiting for 2018 for the allocation to be made. Moreover, there has to be an agreement and certificate from the CENRO, PENRO, region and LMB that the records cannot be found prior to a re-survey.

Option 2 has been tried in other cities (ADB-REGALA), but these entail new surveys, and not re- surveys in areas with missing survey records. This will have to be worked out with the DENR.

Assuming Option 2 will be agreed upon with the LGU, the next innovation will be to reduce the unit cost of lot surveys which is currently about Php4,000 to Php5,000 per lot. There were preliminary discussions between the LGI land quality assurance expert and the LMB of DENR. DENR indicated their willingness to discuss further lowering of the time and cost of first time surveys / re-surveys. SURGE can pursue this using imagery (or GPS instruments) with ground survey teams to cut the unit cost. Satellite imagery at 30 cm resolution is suitable for farmlands and peri-urban areas, and can also be extended for use in residential areas which are not high density, subject to DENR agreement. The source of imagery can be satellite or aerial borne. The survey control in the project area needs to be connected to the satellite system so that maps on the local grid can be produced. The application in a large area for reconstruction surveys prior to titling, such as those required in Batangas City, could reduce the cost of 50,000 lots needing survey and titling from $5M to $1M. This could be equally effective in Puerto Princesa too. Once agreed, the pace of implementation will depend on the finances of the LGU. SURGE could provide the technical assistance on the methodology.

The options mentioned above can be complemented by a community-based parcel identification procedure, back-to-back with adjudication of claims. Once the survey is completed, the necessary documentation of claims needed for filing of titling applications can proceed. Such a methodology can be tried in a few barangays and the LGU staff trained with assistance from the local DENR.

In the short term, tenure security among holders of tax declarations can be strengthened by enhancing the existing RPT system which keeps all the land records and ownership data on the parcels. The system can be backed up by a GIS system in order to ensure that there are no overlaps and the integrity of the system is enhanced. This avoids creating problems of duplicate ownership while it is being relied upon as the proxy for land title. This can be done through the ULIS, supported by a digital cadastral database (DCDB).

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 35 Report on Integrated Land Tenure Assessment, September 2016 In parallel, SURGE can assist the land management committee to strengthen its coordination mechanism to discuss broader land tenure issues in the city and develop a citywide land tenure improvement plan. This takes into account the needs of investors and the general public. The LMC can tackle other land tenure issues such as the need to improve LGU internal processes that affect investments in property development. These include: (i) issuance of building permits; (ii) development permits; (iii) zoning clearance; and (iv) land conversion.

C. Cagayan de Oro City

The approach in CDO is to focus on a specific new growth area identified in the CLUP to maximize the potential for investments. This involves addressing growth area tenure issues to clean and clarify the ownership and status of land that are available for investments, business, residence, housing/settlements and other uses, and make the information available. This consists of the following actions:

Identify and select a growth area, develop Climate Change Mitigation (CCM) and do a Rapid Land Tenure Assessment (preferably in the Lumbia area); Explore the feasibility of mass conversion of agricultural lands in the growth areas into commercial and residential; Link assessor’s data and CPDO; Develop a unified information system that centralizes information at the assessor’s office; Title untitled parcels within the growth areas; Develop alternative mechanisms to resolve land issues/disputes and provide TA to identify options in addressing them; Develop an information platform for stakeholder access to land information that may be shared and which may be useful for investors, business people, and the general public; Identify strategies in the improvement of land tenure in the identified growth areas.

The scope of TA support through SURGE will consist of the following: TA in integration of land-related information from agencies and LGU, and among LGU departments to build a complete picture of land parcel data. This will require the establishment of an inter-agency agreement and harmonization/cleaning of data for overlaps; development of data sharing protocols; and consensus on GIS platform for easier analysis; TA in the development of land tenure improvement strategy for CDO, given the priorities, issues, and resources; TA and training in the implementation of tenure security improvement plan for priority growth areas; and TA in the establishment of an information platform to be shared with the private sector; and engagement with the private sector in land market enhancement activities.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 36 Report on Integrated Land Tenure Assessment, September 2016 D. Iloilo City

There is an excellent opportunity to assist in the titling of LGU-owned lands. Data from the GSO has been requested to determine the extent of work required. This proposal is also supported by the Mayor, as long as this will not entail too much cost on their part.

The land quality assurance expert also recommended undertaking a study to determine the extent of unregistered land transactions as basis for developing measures to keep the registry more reliable and up-to-date.

A review of the city permitting and clearance processes on land related investments (building permits, occupancy permits, location clearance, etc.) will remove bottlenecks for more efficient investments in land. The city is currently experiencing a boom in property development which highlights the need to remove the obstacles to a well-functioning land market. Multi-sectoral cooperation can be achieved through the establishment of a land working group composed of the DENR, RoD, HLURB, DAR, BIR, and the private sector to strengthen coordination in resolving bottlenecks to land market activity.

The land information database could be designed to suit the requirements for investments, and can be lodged at the LEIPO for easy access by all.

E. Puerto Princesa City

As the city was part of the LAMP2-ISF project that ended in 2010, a proposed strategy would be to reinvigorate this mechanism through an inter-agency land working group composed of the DENR, RoD, LGU, HLURB, DAR, etc., to operationalize data sharing; strengthen cooperation in resolving bottlenecks to land market activity. This should serve as the vehicle for the creation of a unified land information system which ensures consistency among the data of the LGU offices (assessor’s, treasurer, GSO, CPDO, City ENRO, investment office), government agencies (RoD, DAR, BIR, DENR (PENRO, CENRO), clerk of court, with the private sector (developers, brokers, agents). Making the information accessible to the public and potential investors could spur industry growth and development. The ULIS should also serve the purposes of land tenure and RPT system improvement and better tax administration, and updating of SMV.

A central part of SURGE support will be to provide technical assistance in the formulation and implementation of a titling program. This will entail discussions with the DENR to lift the moratorium, identifying and assessing options for land tenure improvement given the state of records, identifying priority barangays for titling and other land tenure improvement activities; conducting rapid land tenure appraisal; creating a Land Management Office in the city and designating staff, including doing a training in adjudication; securing deputization from the DENR for LGU adjudicators; and forging of a partnership agreement with the DENR on land titling operations.

While waiting for the lifting of the moratorium, a preparatory action plan must be developed in place of the titling program and land tenure improvement in the city. The proposed set-up is an LGU-led effort with the DENR and RoD supporting the preparations. The barangays with high workable parcels will be identified, and survey records or tax maps will be collected and assessed for rapid land tenure profiling.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 37 Report on Integrated Land Tenure Assessment, September 2016 In the same vein, it is recommended that SURGE assist in improving internal processes that affect investments in property development. These include: (i) building permits; (ii) development permits; (iii) zoning clearance; and (iv) conversion of agricultural lands to non-agricultural use.

Finally, it is recommended that SURGE support the conduct of a land markets study to understand the degree of speculation, the direction of development, the prospects for investments, constraints to actively mobilizing land for investments, and drivers of land market activity.

F. Tagbilaran City

There are two main recommendations to take advantage of secure property rights and further develop Tagbilaran City’s land market:

1. Establish a Unified Land Information System (ULIS) through an effective inter-connectivity among the government agencies (DENR, RoD, DAR, NCIP, Clerk of Court), the LGU land-based offices (assessor’s, treasurer’s, CPDO, GSO, city ENRO) with the private sector (developers, brokers, appraisers, banks, real estate agents, etc). The proposed system will benefit potential investors and sellers, and the players in the real estate industry, collection of RPTs, issuance of required permits, resolving bottlenecks in government bureaucracy, and expediting the completion of titling in the remaining parcels of the city. The existing MOA that was previously mentioned is an excellent starting point of such cooperation. 2. Set up a land-based information platform (LIP) to be lodged at the LGU’s investment office to serve as the information center for land-based transactions. The LIP will have data and information on land tenure situation; land valuation; maps and locations; parcel-based technical data and prices; and other related information on buying and selling of available and on market listing of properties. New investors coming to the city will be equipped with these sets of data in exploring any land-based transactions or potential investments in the city. This could be done in partnership with private sector developers, brokers, surveyors, valuers, and other stakeholders.

G. Zamboanga City

Emerging Recommendations on Land Tenure Improvement The city is currently experiencing a surge in land market activities due to speculation. Buyers are mainly from the region. These transactions, however, are mainly cash based, suggesting excess capital for investment. The city could take advantage of this by making sure its land records are reflective of the situation on the ground. This also calls for a good enabling environment to foster formal land transactions based on faith and legal procedures in property development. In order to help facilitate the land market transactions, a land sharing information platform could be a very effective tool/strategy which may be lodged at the LGU investment office. This office will be the center of land-based information for prospective investors, sellers of properties and all the players in the real estate industry. Using GIS, create a Unified Land Information System where data from the DENR, DAR and LGU are linked together. This will provide the decision makers information on the state of land administration and management for the city.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 38 Report on Integrated Land Tenure Assessment, September 2016 Strengthen the management of government lands through an inventory and development of plans for their utilization, following the CLUP. Conduct a land markets study to understand the drivers of land market activity; and identify areas of possible support.

Possible Scope of SURGE Support: Establish an inter-agency land working group composed of the DENR, RoD, LGU, HLURB, DAR, etc., to operationalize data sharing; strengthen cooperation in resolving bottlenecks to land market activity. This should serve as the vehicle for the creation of a unified land information system which ensures consistency on the data of the LGU offices (assessor’s, treasurer, GSO, CPDO, City ENRO, investment office), government agencies (RoD, DAR, BIR, DENR (PENRO, CENRO), clerk of court, with the private sector (developers, brokers, agents). Making the information accessible to the public and potential investors could spur industry growth and development. The ULIS should also help in improving the RPT system and tax administration, and updating the SMV. Moreover, SURGE can: Assist in improving internal processes that affect investments in property development. These include: (i) building permits; (ii) development permits; (iii) zoning clearance; and (iv) conversion of agricultural lands to non-agricultural use; Provide technical assistance in the management of government lands; and Develop TOR and undertake a land markets study.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 39 Report on Integrated Land Tenure Assessment, September 2016 Annex 1. Checklist of Land Information for Surge Cities

SURGE City: ______Province: ______Region: ______

Geographical/Land Classification No. of Barangays ______2. No. of Bgys strictly Residential Lands ______1. No. of Bgys with Agri Areas ______3. No. of Bgys with Com/Industrial ______2. Total Land Area (has) ______3. Areas covered by: A &D ______ CADT ______ Foreshore Lands and Leases ______ CARP ______ LGU Owned Properties ______ Forests/Protected Areas ______ Military Reservations ______ Others ______

Cadastral Survey Information Status of Cadastral Survey: 1. Is the cadastral survey complete for the whole city? Y______N______2. If No, how much of the city is surveyed in terms of percentage? Pls provide estimate ______% 3. What year was cadastral survey done? ______4. Are there any other type of surveys done in the city Y ______N______5. If Yes, what type of survey and what extent? ______6. What is the status of political boundary survey for the city? ______7. Are there boundary disputes between and among cities/ municipalities in neighboring areas? If yes Please explain ______8. How about boundary disputes between and among barangays in the city? If yes please explain. ______9. At present, can you provide an estimate how much of the city is still untitled? Residential areas______ Commercial areas ______ Industrial Areas ______ Agricultural Areas ______ Others (pls specify) ______10. Are there erroneous surveys detected? Y ______N______11. If Yes, kindly provide details on: What Barangays? ______ Why is the survey erroneous? ______

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 40 Report on Integrated Land Tenure Assessment, September 2016 Any resurvey or anything done to correct them? Y____ N_____ If Yes, please explain______

Titling Activity in the City 1. What government agency (ies) is/are involved in land titling in the city? ______2. Are there ongoing land titling activities now in the city? Y_____ N______If Yes, what offices are doing the titling activity? ______3. How do you determine which parcels are untitled? ______4. Are there many cases of absentee land claimants applying for residential titles in the city? ______5. Is there any involvement of LGUs now in the titling activities? Y_____ N______Please explain______6. Recently, are there many residents applying for residential land titles in the city? Y_____ N______7. Are there disputes between the informal settlers and land claimants on untitled lands here in the city? Y_____ N______. How about land owners and informal settlers on titled lands? Y______N______8. Are there many cases where they need subdivision surveys for titling? ______

LGU Mandate/Roles/Involvement 1. Do you think LGUs’ involvement in titling will generally benefit the land titling process here in the city? Y_____ N_____ 2. In what way(s) will the LGU be benefited if land titling of residential areas is fast tracked in the city? ______3. Are there LGUs prioritized or special development areas identified in CLUP? ______4. Are there recurring land tenure issues LGU has been dealing for the last few years? ______5. Are there public land areas which the LGU wants to be titled, i.e. school, market, vehicle terminals, etc... 6. Are there areas where there is active property development in the city for the last five years? ______7. Which office in the LGU do you think should handle land tenure affairs? ______

Department of Agrarian Reforms (DAR) 1. What is the coverage of DAR areas in the city? Which barangays are covered?______2. What is the status of land titling in the covered areas? ______3. Areas where CLOAs, EPs were issued 10 years and lower? ______

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 41 Report on Integrated Land Tenure Assessment, September 2016 ______4. Number of CLOAs and Emancipation patents issued by DAR? ______5. Are there current issues DAR are resolving on land titling in the city? ______6. Are there areas where there are LAD balances and hectares involved? ______7. Are there areas in DAR coverage with approved conversion? ______

Registry of Deeds (RoD) 1. Number of titled properties in the city? Residential ______ Commercial ______ Industrial ______ Agricultural ______ Others ______2. Are there incidences of fake and spurious titles in the city? ______3. How many parcels are with judicial titles? 4. Areas covered by Cadastral proceedings? ______5. Is there any information on subdivision surveys approved by LRA? ______6. Are there many cases of reconstituted titles? ______

LAMS Computerization Project Information Status of Computerization: 1. Are the cadastral maps completely scanned for the city? Yes______No______2. If No, How many of the cadastral maps were already scanned? Kindly provide estimate:_____% 3. Are the projection maps completely scanned for the city? Yes______No______4. If No, How many of the projection maps were already scanned? Kindly provide estimate:____% 5. Are the isolated plans completely scanned? Yes______No______6. If No, How many of the isolated plans were already scanned? Kindly provide estimate:____% 7. Are the cadastral maps/projection maps already georeferenced? Yes______No______8. Are the lot parcels already encoded? Yes______No______9. If yes, are they encoded based on lot data computation sheets (LDCS) or digitized based on scanned cadastral maps? ______10. Is there an on-going sharing of information between DENR and the city? Yes____ No____

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 42 Report on Integrated Land Tenure Assessment, September 2016 Annex 2. Selected Photos

Cagayan de Oro City

Ms. Helen Llagas of DENR-CENRO (center) showing land classification maps

Zoomed-in photo of the LC Maps showing A & D and timberland areas. Old LC maps dating to 1928-1933

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 43 Report on Integrated Land Tenure Assessment, September 2016

Indicative base map of Cagayan De Oro from DENR with land status. Colors are not accurate due to conversion from pdf to jpeg format.

yellow - titled/patented lots blue - CLOA titled lots gray - untitled lots violet - government institutions

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 44 Report on Integrated Land Tenure Assessment, September 2016 Batangas City

CPDO showing satellite images of the city

Meeting with the city Registry of Deeds

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 45 Report on Integrated Land Tenure Assessment, September 2016

Iloilo City

Lot data computation sheets at DENR regional office

State of records at the DENR regional office

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 46 Report on Integrated Land Tenure Assessment, September 2016

Zamboanga City

Meeting with DAR

Meeting with the private sector

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 47 Report on Integrated Land Tenure Assessment, September 2016

Puerto Princesa City

Kick-off meeting with department heads

Meeting with DAR

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 48 Report on Integrated Land Tenure Assessment, September 2016 Annex 3. List of Persons Met

Batangas City

1. Carolina Lizo DAR MARO 2. Oliver Gonzales LGU City Environment and Natural Resources Officer 3. Arturo Fajilan City Assessors Office 4. Engr. Rommel Bool City Assessors Office 5. Elmer Bascos DENR PENRO 6. Allan Estillone DENR PENRO LMO 7. Marcebeni Velasco DENR PENRO, Geomatics Chief 8. Atty Neil Pargas City Registry of Deeds 9. Engr. Januario Godoy City Planning Development Head 10. Dr. Cora Dalangina Clerk of Court Officer 11. Maria Teresa Geron City Treasury Office Head 12. Ms. Fely Ramos Private Sector, Developer

Cagayan de Oro City

1. Edwin Dael OIC, CLENRO, Cagayan de Oro City LGU 2. Mabel Marte PDO IV, CPDO, Cagayan de Oro City LGU 3. Eileen B. San Juan LEIPO, City CDO-TIPC 4. Leonil Mistula Office of the City Treasurer 5. Josafat Licayan PDO IV, CPDO, Cagayan de Oro City LGU 6. Jeo Valerio ISA III, CPDO, Cagayan de Oro City LGU 7. Joshua Bando OIC, City Assessors Office, Cagayan de Oro City LGU 8. Edna Ferraris DENR CENRO 9. Helen Llagas DENR CENRO 10. Conrado Mahinay Jr. DENR CENRO 11. Arnolfo Magadan Chief, Survey and Control Division, DENR Region 10 12. Arlene Magaday DENR Region 10 13. Phillip Bahala DENR Region 10 14. Geoffrey Thiani DENR Region 10 15. Rosita Lubguban DENR Region 10 16. Roel Dahonog Chief, LPDD DENR Region 10 17. Roberto Almonte Regional Director, NCIP Region 10 Chief, Land Tenure Division, DAR Regional Office Chief, Program Beneficiaries Division, DAR Regional Office 18. Mabel Office of the Regional Director, DAR Regional Office 19. Cipriano Ratunil Register of Deeds, Cagayan de Oro City 20. Gigi C. Roa President, GCR Realty and Vice President for Mindanao, PHAREB and CREBA 21. Ma. Shiela Mercurio Socialized Housing Developers Association (SHDA) 22. Rosabelle B. Villanueva General Manager Liberty Land Corporation and GM and GM and Vice President, SHDA Northern Mindanao Chapter 23. Lolita G. Alon Agusland and member, SHDA 24. Val F. Sta. Ana, Jr. AVP, Pueblo de Oro Development Corporation, and former President, SHDA and CREBA Mindanao 25. Cheryl Ann Martinez Officer in Charge, PCFI/SHDA

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 49 Report on Integrated Land Tenure Assessment, September 2016 Iloilo City

1. Deanna Lijauco SURGE CPC 2. Ritchel Gavan SURGE CPA 3. Nelson Parreno City Assessor 4. Cheryl Chan Assistant City Assessor 5. Mitchell Gonzales Assistant City Assessor 6. Jerry Sevilla LAOO III - CASSO 7. Mary Jean Theresa Patino LAOO IV - CASSO 8. Zonida Aguilos City Treasury Office 9. Jocelyn Escanuela City Treasury Office 10. Jinny Hermano Acting Assistant City Treasurer 11. Atty. Giovanni Miraflores City Registry of Deeds 12. Joren Sartorio City General Services Office 13. Butch Penalosa City Planning and Development Office 14. Alma May Tayo Private Sector, Auditor PCCI 15. Donna Rose Ratilla Private Sector, PCCI President 16. Antonietta Galan Private Sector, Broker 17. Nerissa Besol Private Sector, Broker 18. Leeman Amba Private Sector, Broker 19. Jeanette Alvarez Private Sector, Broker

Puerto Princesa City

1. Gemma Borreros City Program Coordinator 2. Shiela Nilasa Project Assistant 3. Joven Baluyut Assistant City Assessor 4. Clyde Caabay Assessors Office 5. Andross del Rosario Assessors Office 6. Alma Romasanta Assessors Office 7. Jasmin Abrea Assessors Office 8. Jerome Padrones Treasury Office 9. Joel Solidum Treasury Office 10. Corazon Abayari Treasury Office Head 11. George Vasquez CPDO 12. Coleen Catama CPDO 13. Atty Rachel Dilig LRA-RoD Head 14. Juan dela Cruz DENR PENRO 15. Emmer Garraez DENR CENRO Puerto Princesa 16. Engr Roldan Parangue NCIP Provincial Officer 17. Jesuisela Magdayao DAR MARO Puerto Princesa 18. Rosenda Natividad DAR 19. Remedios Bacuel DAR 20. Jonabe Daguer Palawan Real Property – Private Sector 21. Charmine Nati Palawan Real Property – Private Sector 22. Bart Duff Puerto PCCI EVP 23. Joseph Genoves LBP Appraiser 24. Loralaine Gabinete PALREB Member 25. Mar Anonat Puerto Princesa Bankers Association President

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 50 Report on Integrated Land Tenure Assessment, September 2016

Tagbilaran City

1. SURGE CPC Rosalinda Paredes 2. SURGE Project Assistant Madeleine Mary Sinon 3. Chief of Staff Matthew Nemenzo 4. City Assessor Livio K. Sarabia 5. City Treasurer’s Office IT Officer Atty. Lawrence Medillo 6. City Planning and Development Office Ceasar Pelaez 7. Zoning Officer Engr. Fulgencio Sabijon 8. Subdivision Officer Engr. Sandro 9. General Services Officer Chris John Rener G. Torralba 10. City Register of Deeds Atty. Carmelo D. Echica 11. DAR Legal Officer Alma Lilibeth T. Bantugan 12. DENR CENRO LMO III Aurelio Baay Jr. 13. DENR PENRO Technical Services Division Chief For. Anecito C. Suarez 14. DENR PENRO Management Services Division Chief Engr. Epifania H. Laguitao 15. Private Sector, YUPP Inc. President Crisaldo Estoque Jr. 16. Private Sector, BCCI Reyna Deloso 17. Private Sector, Alturas Supermarket Pris Jane Calipayan 18. Private Sector, BBA President Evangeline Pacana 19. Private Sector, BBA Secretary Karen Joan Masbog

Zamboanga City

1. Annabelle Cajita City Planning Coordinator 2. Mark Revillas Project Assistant 3. Jojo Sicat City Planning and Development Head 4. Erwin Bernardo City Assessors Office Head 5. Soledad Li City Treasurers Office Head 6. Rene Lacandalo LTOO IV, City Treasurers Office 7. Irene Allian LAOO IV, City Assessors Office 8. Olive Baird PO II, CPDC 9. Aquilina Plagata City General Services Office Head 10. Aizar Muhallus AA IV, CPDC 11. Allan Aizon Computer Services Head, Assessors Office 12. Rizamay Basing CGSO 13. Mila Cortez ZCIPS 14. Chalie Molina ZCIPS 15. Ben Acana DENR CENRO Head 16. Ma. Rosario Alloria Department Of Agrarian Reform 17. Tetywangsa Husin DAR 18. Ma. Isabel Rojas DAR 19. Lester Masuhud Records Head, Register of Deeds 20. Nelson Antatico Chapter President, REBAP – Zamboanga 21. Sheila Padua Branch Manager, Filinvest Land 22. Raymond Ojeda Owner, Rimel Construction 23. Dexter Rondovico ZABIDA

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 51 Report on Integrated Land Tenure Assessment, September 2016 References

Besley and Ghatak (2009; 2011); as cited in DFID, 2014.

DFID. April 2014. Secure property rights and development: Economic growth and household welfare. Property rights evidence paper.

Philippines-Australia Land Administration and Management Project. (2014, September). Land Tenure Status Report Book 1 – Results.

Trebilcock, M. and Veel, P.E. (2014). Property Rights and Development: The Contingent Case for Formalization , 30 J. Int'l L. 397 (2014). Retrieved from http://scholarship.law.upenn.edu/jil/vol30/iss2/1.

USAID Issue Brief. Land Tenure, Property Rights and Economic Growth in Rural Areas. Retrieved from www.usaidlandtenure.net/sites/default/files/USAID_Land_Tenure_Economic_Growth_Issue_Br ief-061214.pdf.

World Bank (2016). Doing Business 2016: Measuring Regulatory Quality and Efficiency. Economy Profile Philippines, 2016.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 52 Report on Integrated Land Tenure Assessment, September 2016